Karen purchased 100 shares of X-Corporation Stock in 2020. X-Corporation is registered and headquartered in Colorado and is listed on the New York Stock Exchange. In 2021, X-Corporation declares and pays a dividend of $4.00 per share. What are the tax consequences for Karen?

Group of answer choices

Karen has received an eligible dividend that will be taxed at a rate of 15-20%.

Karen has received an eligible dividend that will be excluded from her gross income.

Karen has received a non-eligible dividend that will be taxed at the ordinary progressive rates.

Karen has received a non-eligible dividend that will be excluded from gross income.