A Ine 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 earnings & profits of $15,000,000. A. Inc faces a marginal tax rate of 21%. All 400 shares owned by Swere redeemed. The redemption price paid was land (FMV $1.200.000, cost basis - 5500,000) phis cash of $2,300,000 Spaid $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? $3,500,000 Dividend $700,000 Long-term Capital Gain No Gain Recognized $3,500,000 Long-term Capital Gain A Ine 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 earnings & profits of $15,000,000. A. Inc faces a marginal tax rate of 21%. All 400 shares owned by Swere redeemed. The redemption price paid was land (FMV $1.200.000, cost basis - 5500,000) phis cash of $2,300,000 Spaid $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? $3,500,000 Dividend $700,000 Long-term Capital Gain No Gain Recognized $3,500,000 Long-term Capital Gain