ABC Corporation has outstanding shares of common stock of which A, B, C and D each owns 100 shares. In on transaction, ABC Corporation redeems 55 shares from A, 25 shares from B, and 20 shares from C. The earnings and profits of ABC Corporation was $100,000 on the date of redemption. The redemption price was $100 per share. The shareholders purchased their stock more than one year ago for $80 per share. What is the tax effect to A of the redemption? Dividend of $1,100 Long-term capital gain of $1,100 Dividend of $5,500 Long-term capital gain of $5,500