(TCO 5) Pursuant to a plan of corporate reorganization adopted in the current year, Patrick exchanged 1,000 shares of Remodel Corporation common

(TCO 5) Pursuant to a plan of corporate reorganization adopted in the current year, Patrick exchanged 1,000 shares of Remodel Corporation common stock that he had purchased for $200,000 for 1,200 shares of Monarch Corporation common stock that have a fair market value of $400,000. As a result of the exchange, which of the following are Patrick’s recognized gain and his basis in the Monarch stock? (Points : 5) No recognized gain and basis of $200,000No recognized gain and basis of $400,000Recognized gain of $200,000 and basis of $400,000Recognized gain of $200,000 and basis of $200,000None of the above