All of the Following Distributions of Stock Dividends Are Taxable

All of the following distributions of stock dividends are taxable except:

A) fte shareholders have the choice to receive cash or other property instead of stock or stock rights.
B) fte distribution of common stock is made on a prorated basis on common stock outstanding.
C) fte distribution gives cash or other property to some shareholders and an increase in the percentage interest in the corporation's assets or earnings and profits to other shareholders.
D) fte distribution gives preferred stock to some common stock shareholders and common stock to other common stock shareholders.