C contributes appreciated property worth $$800,$ with an adjusted basis of $$600,$ to newly formed Z Corporation in exchange for all the $80$ outstanding shares of Z$.$ Immediately thereafter, C gives $20$ shares to D$,$ C$$s employee, in payment of accrued wages. C had agreed with D that if D would stay with the newly incorporated Z$,$ C would be bound to give D the shares.

Group of answer choices

$351$does not appliy since C does not have control immediately after.

$351$ does not apply under American Bantam Car

$351$ applies and C has gain of $$50$ on the satisfaction of the debt to D$.$

a and b$.$

None of the above.

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