Diane, the sole shareholder of Check Corporation's stock, owns 500 shares that she purchased 10 years ago. Diane's basis in Check's stock is $20,000. During the current year, Check, which had earnings and profits of $50,000, redeemed 250 shares of Diane's stock for $12,000. What are the amount and the character of Diane's gain? $2,000 ordinary income, $2,000 capital gain. $12,000 capital gain. $12,000 dividend