Not sure of the answer - please help.

Question #13 of 85 To the extent that a distribution to a shareholder exceeds the corporation's current and accumulated earnings and profits, how is such a distribution treated? A) The distribution is treated as a nontaxable distribution of property. B) The distribution is treated as a taxable event, and the shareholder recognizes it as a capital gain. C) The distribution is treated as a taxable event, and the shareholder recognizes it as an ordinary gain. D) The distribution is treated as a nontaxable return of capital