Cerner Corporation announced a first-come, first-serve stock repurchase offer to its shareholders - the company agreed to repurchase 2,653,780 shares of its common stockin exchange for total consideration of $173,434,000.Cerner had 329,641,500 total shares outstanding before the redemption.

You acquired 16,482,075 shares of Cerner's stock two years ago for $20/share.You were the only shareholder to participate in the repurchase offer and Cerner agreed to redeem the total number of sharesdirectly from you.

Choose the response that accurately represents the amount and character of taxable income that you would report on your tax return with respect to the stock redemption assuming the redemptionDIDqualify for exchange treatment.

A) $173,434,000 tong-term capital

B) $120,358,400 dividend income

C) $120,358,400 short-term capital gain

D) $120,358,400 long-term capital gain

E) $173,434,000 dividend income