Amanda Corp is owned by Amanda 500 shares, Sammy 100 shares, and Bailey 400 shares.

Sammy is Amanda's grandson. Amanda Corp redeems 225 of Amanda's shares. Amanda's basis

in her shares is $5,000 ($10 per share). What is the tax treatment to Amanda?

A. Dividend

B. Return of Capital to extent of basis then capital gain

C. Return of Capital

D. Dividend to extent of basis then return of capital

E. None of the above