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Diana, the sole shareholder of Charles Corporation stock, owns 1 , 0 0 0 shares, which she purchased 1 8 years ago. Diana s basis
Diana, the sole shareholder of Charles Corporation stock, owns shares, which she purchased years ago. Dianas basis in the stock is $ million. During the current year, Charles, which had earnings and profits of $ million, redeemed shares for $ million. What are the amount and the character of Dianas gain?
A
$ capital gain.
B
$ dividend.
C
$ ordinary income.
D
$ capital gain.
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