You're absolutely insane if you chose anything other than B

C if he didn't get paid by B. Otherwise always B

Well B is obviously the one who owns it. Though if he had a monopoly on flute production and was fixing prices, I would argue that it's government's role to interfere. But any answer other than B is clearly madness.

Child B should own the flute and rent it out at a fair market rate to child A.

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I'm an utilitarist, what's the point of giving a flute to someone if he/she's not able to use it ?
Also, currency are spooks.

Child A is my answer

B pays C 1/4 of the price she sells it to A for

there is an image of child B using the flute as a dildo good luck finding it

ART FASCISM IS THE FUTURE ALL WILL BOW BEFORE THE ULTRAVIOLENT CREATIVE MASTERS BECAUSE THEY ARE THE ONES WHO THE A.I. WILL WORSHIP

SCREENCAP THIS

B lets A use the flute under contract. B has A tell concert goers where she got the amazing flute. B pays A to make more flutes.

He's clearly white, hence not an inmate, B paid him a fair market price for his labour, provided materials and equipment for flute production.