Alex Transon transfers $1 million to a grandchild. Alex is in the 40% gift tax bracket and pays the generation-skipping transfer (GST) tax. Alex does not have any remaining generation-skipping exemption to allocate to the transfer. What are the gift and GST consequences?

A. Gift tax of $560,000

B. GST tax of $560,000

C. No gift tax

D. No GST tax