Mike and Gus, equal shareholders in Lava Corporation, receive $750,000 each in distributions on December 31 of the current year. Pilot Corp's current-year taxable income is $974,000 and it has no accumulated E & P. Last year, Pilot sold an appreciated asset for $856,000 (basis of $576,000). Payment for one-half of the sale of the asset was made this year. How much of Mike's distribution will be taxed as a dividend?

Question options:

A. $417,000

B. $0

C. $487,000

D. $834,000

E. None of these.