Katie and Mae, individuals, own all of the outstanding stock of Furlow Corporation. Each has a basis of $$30,000$ in their twenty $(20)$ shares of stock. Furlow Corporation has Earnings And Profits $($E&P$)$ of $$1,000,000.$ Katie wishes to retire in the current year and wants to sell her stock for its Fair Market Value of $$600,000.$ Mae would like to purchase Katie's shares and, thus, become the sole shareholder of Furlow Corporation but does not have any available Cash. To this effect, Furlow Corporation distributes $$600,000$ to Mae who in turns pays the $$600,000$ to Katie for all of her stock. As a result, which of the following is correct?

Mae has Long$-$Term Capital Gain of $$570,000.$

Katie has Long$-$Term Capital Gain of $$600,000.$

Katie has Dividend Income of $$600,000.$

Mae has Dividend Income of $$600,000.$