Brattleboro Co. distributes shares of Caldwell Co. to its sole shareholder. The ACB of the shares to Brattleboro Co. was $9,700, and the FMV was $32,000 at the time of the distribution. What are the income tax consequences to the corporation (first) and shareholder (second)? A. The corporation will include a taxable capital gain of $4,850 in income; the shareholder will include a taxable dividend of $22,300 in income plus the gross-up. The corporation will have no income tax consequence; the shareholder will include a taxable dividend of $32,000 in income plus the gross-up. C. The corporation will include a taxable capital gain of $11,150 in its income; the shareholder will include a taxable dividend of $32,000 in income plus the gross-up. D. The corporation will deduct a dividend of $22,300; the shareholder will include a taxable dividend of $22,300 in income plus the gross-up