Fatima transfers an asset having an FMV of $200,000 and an adjusted basis of $150,000 to XYZ Corporation in a Sec. 351 transaction. Fatima receives in exchange XYZ common stock having an FMV of $175,000 and Brown Corporation common stock (a capital asset) having an FMV of $25,000 and a basis of $10,000 to XYZ Corporation. XYZ Corporation must recognize: ____________


a. no gain.

b. a $15,000 capital gain.

c. a $25,000 capital gain.

d. a $50,000 capital gain.