In Year $1,$ Daniel inherited $100\%$ of Candy Corporation$$s outstanding stock from his mother. The stock had a fair market value of $$250,000$ at the date of death and was reflected on Candy$$s balance sheet as follows:

Cash $$250,000$

Capital stock $150,000$

Accumulated earnings & profits $100,000$

Daniel immediately withdrew $$50,000$ out of Candy Corporation as a dividend distribution. Later in Year $1,$ pursuant to a plan of liquidation, Daniel withdrew the remaining $$200,000$ out of Candy. For Year $1,$ how much will Daniel be required to report as ordinary dividend income and capital gain or loss?

$$

Ordinary Dividend Capital Gain or Loss

$$ A$.$

Ordinary Dividend

$$100,000$ Capital Gain or Loss

$$(100,000)$

$$ B$.$

Ordinary Dividend

$$0$ Capital Gain or Loss

$$0$

$$ C$.$

Ordinary Dividend

$$50,000$ Capital Gain or Loss

$$(250,000)$

$$ D$.$

Ordinary Dividend

$$50,000$ Capital Gain or Loss

$$(50,000)$