Choice "C" is correct. The acquisition of a controlling (usually 80%) interest by one corporation in the stock of another corporation solely for stock is a tax-free (Type B) reorganization.
Choice "b" is incorrect. King need not acquire 100% of Jaxson's stock, just a controlling interest.
Choice "a" is incorrect. There is no specific amount of acquiring corporation stock that must be issued in a tax-free reorganization; the acquiring corporation must acquire 80% or more of the target's stock, however.
Choice "d" is incorrect. There is no requirement that Jaxson surrender assets for the reorganization to qualify as tax-free.