Z is a corporation owned entirely by two individuals, C and D. C owns 60 shares of Z, D owns 40 shares of Z. D has an option to buy 21 shares from Z.

a) D is considered as owning 61 shares of Z for purposes of 318 and 302 calculations regarding D

b) D is considered by the IRS as owning 21 shares of Z for purposes of 302 and 318 calculations for C

c) A and B

d)None of the above