Mortisha Exchanges Her $300,000 in Preferred Stock and a $100,000

Mortisha exchanges her $300,000 in preferred stock and a $100,000 bond for 40% of the common stock (worth $400,000) in Adams Corporation.The bond paid 6% annual interest and the preferred stock had been paying a 5% dividend which was cumulative.The common stock is not likely to pay dividends in the next three years because Adams is having some financial difficulties.

A) This transaction qualifies as a "Type B" reorganization.
B) This transaction qualifies as a "Type E" reorganization.
C) This transaction qualifies as a "Type F" reorganization.
D) This transaction qualifies as a "Type G" reorganization.
E) None of the above.