Considering the differences and similarities between provision 721 (non-recognition of gain or loss on contributions to a partnership) and 351 (corporation formation); for each statement below select one of the following: "Applies to 351" or "Applies to 721" or "Applies to Both"

a. Non-recognition of gain or loss on contributions applies to initial transfers as well as all subsequent contributions to the entity.

b. If the transfer of property involves the receipt of money or other consideration, the transaction may be deemed a sale or exchange rather than a tax-free transfer.

c. Non-recognition provisions do not apply to all transfers made by the owners.