7 1 point A Inc has 1,000 shares of common stock outstanding. These shares are owned by M (600 shares) and S (400 shares). A, Inc. has current & accumulated earrings & profits of $15,000,000. A, Inc. faces a marginal tax rate of 21%. 150 shares owned by S were redeemed. The redemption price paid amounted to $1,200,000. The price was paid by A, Inc. in the form of land distributed to S with a cost basis to the corporation of $500,000. S paid $7.000 for each share of his stock when he acquired it five years ago. M is the mother of S. What are the tax results of the redemption to S? $150.000 dividend OOOO $1.200,000 Dividend $150,000 Long-term Capital Gain O No gain recognized Previous Next