C owns 60 shares and D owns 40 shares of Z Corporation, representing all of Z's outstanding shares. C and D are father and son. Z redeems all of C's stocks. C stays on as Z's president with compensation tied to Z's profits.

a) This redemption is treated as a sale or exchange under 302(b)(3)

b) This redemption is dividend since C has not completed termination in his interest in Z because of the role as president

c) None of the above