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Imani purchased 200 shares of Grey Rock Mutual Fund in 2020 for $1,600. Although she received distributions, the fund had no earnings or profits for

Imani purchased 200 shares of Grey Rock Mutual Fund in 2020 for $1,600. Although she received distributions, the fund had no earnings or profits for the next three years. She received a Form 1099-DIV reporting a $900 nondividend distribution for 2021, and she received a Form 1099-DIV reporting an $800 nondividend distribution for 2022. As a result of these distributions, Imani's 2022 return should report:

A. $100 capital gain.

B. $100 dividend income.

C. $800 capital gain.

D. $800 dividend income.

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