. On July 1, 20X4, Alan, sole proprietor of K, transferred all of K's assets to M Inc., a new corporation, solely for a certain percentage of M's stock. Clyde, who is not related to Alan, also bought some of M's stock on July 1. M's outstanding capital stock consisted of 1,000 shares of common stock. For the transfer of K's assets to be tax free, what is the minimum number of shares of M's stock that Alan and Clyde must own immediately after the exchange? A. 500 B. 501 C. 800 D. 801