Hazel, Emily, and Frank, unrelated individuals, own all of the stock in Wren Corporation (E & P of $1,200,000) as follows: Hazel, 1,500 shares: Emily. 300 shares; and Frank, 200 shares. Wren redeems 900 of Hazel's shares (basis of $210.000) for $625.000. With respect to the distribution in redemption of the stock: O Hazel has a capital gain of $415,000. Hazel has dividend income of $625.000. No response is correct. O Hazel has dividend income of $415.000. Hazel has a capital gain of $625.000