Which statement is false?

a. Section 306 will not apply on a complete termination of the shareholder's stock interest by redemption.

b. None of these are false.

c. Common stock can be Section 306 stock.

d. More than one of these is false.

e. There are no tax consequences upon issue of Section 306 stock, but upon a sale to a third party the shareholder may recognize income based on E&P on the date of the sale.