Larry received the following dividends in the current tax year:

- $1,000 cash from Bears Inc.

- $500 (FMV) of property with $200 basis from Tigers Inc.

- Stock dividend from Lions Inc. of 50 shares ($15/share) FMV)

All three corporations are publicly traded. Larry had the option to receive cash instead of a stock dividend from Lions Inc. What amount of the dividends received must Larry include in gross income on his federal tax return for the current year?

a. $1,000

b. $1,200

c. $1,500

d. $2,250