Corporation Z is owned entirely by two individuals, C and D. C owns 60 shares of Z common stock bought in one transaction for $1,200. Downs 40 shares of Z common stock with a basis of $60 per share. The stock's fair market value is $40 per share. Z's E&P is $1,000. D sells 10 shares back to Z for $400. The following statements are with regard to D. a. The redemption will be treated as a dividend. b. The redemption will be treated as a sale under 302(b)(2), substantially disproportionate disposition. oc. It is impossible to tell how the redemption will be treated. od. The redemption will likely be treated as a sale under 302(b)(1), not essentially equivalent to a dividend. e. None of the above