Qadira Exchanges 40% of Her Common Stock for 80% of Newly

Qadira exchanges 40% of her common stock for 80% of newly issued preferred stock in the Pinto Corporation. There was no Pinto preferred stock previously outstanding, and Qadira received only stock. The other 20% of the preferred stock was received by another shareholder, solely in exchange for 10% of his common stock in Pinto. How is this transaction treated for tax purposes?

A) This is a taxable transaction.
B) This transaction qualifies as a "Type E" reorganization.
C) This transaction qualifies as a "Type B" reorganization.
D) This transaction qualifies as like-kind exchange.
E) None of the above.