C and D jointly organized Z corporation. C transfers in property Z in exchange for $500 in cash and 45 shares of Z's stcok. D transfers $500 in cash to Z in exchange for the other half of Z's stock (that is, the other 45 shares). Z also issues 5 shares of its stock to lawyer in payment of lawyer's bill for legal services in organizing Z.

a This is not a good 351 transaction since property transferors do not have control immediately afterwards. Lawyer has received shares for services.

b This is not a good 351 transactions because the property transferors do not control 80% of the shares since A only receives 45 shares.

c This transfer qualifies fro non-recognition under 351

d None of the above

Correct answer is?