Jane, Bob, and Mark own 1,000 shares, 600 shares, and 400 shares, respectively, in Parsley Corporation( a C Corporation with E & P of $750,000). Bob is Jane's uncle, and Mark is Jane's nephew. Parsley Corporation redeems all of Jane's stock for $500,000. Jane paid $100 a share for the stock five years ago. With respect to the redemption, Jane has:

Dividend income of $400,000.

Dividend income of $500,000.

Long-term capital gain of $500,000.

Long-term capital gain of $400,000.