Campbell Corporation purchased 1000 shares of Chunky Inc. stock on July 1, 2017 for $40 per share, representing less than 5% of Chunky's outstanding stock. On September 1, 2018 Campbell receives less than 5% of Chunky's outstanding stock. On September 1, 2018 Campbell receives a dividend from Chunky of $5 per share when the fair market value of the stock is $45 per share. For purposes of determining gain or loss on a subsequent sale of the Chunky stock, Campbell will:

A. reduce its basis in each share of Chunky stock by $2.50

B. reduce its basis in each share of Chunky stock by $5.00

C. Have a basis in each share of Chunky stock of $45

D. Have a basis in each share of Chunky stock of $40