Exact Co.'s current E&P is $100,000 (it has no accumulated E&P). It distributes $80,000 each to its two equal shareholders (Jennifer and Andy). Jennifer's basis in her stock is $10,000 and Andy's basis in his stock is $35,000. What are Jennifer's tax consequences from the distribution?

a. $80,000 dividend income

b. $50,000 dividend income and $20,000 capital gain

c; $50,000 dividend income

d.$70,000 capital gain