Marco would like to educate his son the importance of having investment. As such, he transferred to his son the shares he owned at his son's birthday when he turned 17. Marco bought #1,000 shares at $2,000 in 1998. The market price of each share was $10 at the time of transfer. As soon as the Marco transferred the shares to his son; the company paid non-eligible dividends of $2 per share. What is the tax impact of this transfer?