C owns all of the stock of Z corporation, which is worth $1 million. Z wants to acquire land worth $75,000 from D. C porposes to transfer $1.00 of cash to Z at the same time D transfers the land to Z. Each C and D will receive stock.

a This is good Seciton 351 transaction. D will not recognize loss and Z Corporation will take a higher carry-over basis from D.

b Tis is not a good Section 351 transactions since C is transferring de minimus amount of property per regularion 1.351 (a)(1)(ii).

c Neither of the above

Which one is the correct answer