Martin Corporation is owned equally by Craig and his wife Sharon, each of whom hold 100 shares in the company. Martin redeemed 75 shares of Craig's stock in the company on December 31, 2022. Martin paid Craig $2,000 per share. His income tal basis in each share is $1,000. Martin has total E\&P of $500,000. What are the tax consequences to Craig because of the stock redemption? Select one: a. $75,000 capital gain and a tax basis in each of his remaining shares of $1,000. b. $150,000 dividend and a tax basis in each of his remaining shares of $4,000. c. $150,000 dividend and a tax basis in each of his remaining shares of $1,000. d. $75,000 capital gain and a tax basis in each of his remaining shares of $2,000. Martin Company is owned equally by Craig and his sister Sharon, each of whom hold 100 shares in the company. Sharon wants to reduce her ownership in the company, and it was decided that the company will redeem 50 of her shares for $1,000 per share on December 31, Year 3. Sharon's income tax basis in each share is $500. Martin has total E\&P of $250,000. What are the tax consequences to Sharon because of the stock redemption? Select one: a. $25,000 capital gain and a tax basis in each of her remaining shares of $500. b. $25,000 capital gain and a tax basis in each of her remaining shares of $100. c. $50,000 dividend and a tax basis in each of her remaining shares of $100. d. $50,000 dividend and a tax basis in each of her remaining shares of $50. e. None of these choices. Martin Corporation has $424,000 book net income before tax. Book net income reflects $200,000 incentive stock option