Wade owns 60 shares and Wes owns 40 shares. Cardinal Corporation redeems 12 of Wades shares for $500 per share. Wade paid $300 per share for his stock in Cardinal three years ago. How will Wade be taxed on the stock redemption?
A. Long-term capital gain of $2,400.
B. Long-term capital gain of $3,600.
C. Long-term capital gain of $6,000.
D. Dividend income of $6,000.
E. None of the above.