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Debbie, the sole shareholder of Ancient Corporations only class of stock, owns 1,000 shares, which...

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Accounting

Debbie, the sole shareholder of Ancient Corporations only class of stock, owns 1,000 shares, which she purchased 15 years ago. Debbies basis in the stock is $1 million. During the current year, Ancient, which had earnings and profits of $2.5 million, redeemed 900 shares for $2,250,000. What are the amount and the character of Debbies gain?
A.
$2,250,000 dividend.
B.
$2,250,000 capital gain.
C.
$1,350,000 dividend.
D.
$1,350,000 capital gain.

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