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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 1,000 shares, which she purchased 18 years ago. Dianas basis in the stock is $2 million. During the current year, Charles, which had earnings and profits of $5 million, redeemed 900 shares for $4.5 million. What are the amount and the character of Dianas gain?
A.
$2,700,000 capital gain.
B.
$4,500,000 dividend.
C.
$2,700,000 ordinary income.
D.
$4,500,000 capital gain.

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