On the last day of the year, Smith Corp made a nonliquidating distribution to Fred, its sole shareholder, of $110,000 in cash. The corporation's earnings and profits were $100,000 on the last day of the year. How much was the total dividend income received by the shareholder as a result of the distribution made by Smith Corpo?
a. 0.
b. $100,000 dividend.
c. $110,000 dividend.
d. None of the above.