Section 121d3 Applies to Divorced Couples

Section 121d3 applies to divorced couples. What is the purpose of this tax code section?

A) It extends the two-out-of-five year test for purposes of a primary residence sale
B) It states that no gain or loss is recognized upon the division and transfer of property incident to divorce
C) It specifies that any property transferred to the ex-spouse within three years of the divorce is not a gift.
D) It permits the transfer of the child exemption amount to the noncustodial parent