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37. Which of the following definitions of Sec. 338 property classes is not correct?

A) Class I: cash, demand deposits, and similar accounts in banks, savings and loan associations, etc.

B) Class II: actively traded personal property such as publicly traded securities

C) Class III: covenants not to compete, similar restrictions on trade, etc.

D) Class IV: inventory or other property held primarily for sale to customers

38. Navatek Corporation adopts a plan of reorganization and exchanges 1,500 shares of its voting stock and $75,000 in cash for Santos Corporation's assets having a $300,000 adjusted basis and a $375,000 FMV. Santos Corporation is subsequently liquidated. What is Navatek Corporation's basis in the assets acquired in the exchange?

A) $225,000

B) $250,000

C) $300,000

D) $375,000