Julian, Berta, and Maria own 400 shares, 400 shares, and 200 shares, respectively, in JBM Corporation with earnings and profits of $750,000. Berta is Julian's sister, and Maria is Julian's aunt. JBM Corporation redeems all of Julian's stock for $420,000. Julian paid $200 a share for the stock five years ago. Julian continued to serve on JBM Corporation's board of directors after the redemption. With respect to the redemption:
A. Dividend income of $420,000.
B. Long-term capital gain of $420,000.
C. Dividend income of $340,000.
D. Long-term capital gain of $340,000.
E. None of the above.