C contributes appreciated property worth$800, with an adjusted basis of $600, to newly formed Z Corportation in exchange for all the 80 outstanding shares of Z. Immediately thereafter, C gives 20 shares to D, C's employee, in payment of accrued wages. C had agreed with D that if D would stay with the newly incorporated Z, C would be bounde to give D the shares.

a 351 applies since C has control immediately after.

b 351 does not apply under American Bantam Car.

c 351 applies and C has gain of $50 on the satisfaction of teh debt to D.

d None of the above.

Which is the correct answer