On Feb. 1, 2018, the board of directors of X Corp. declares a dividend of $2 per share to shareholders of record as of March 1, 2018, payable as of April 1, 2018. Taxpayer-A transfers 200 shares to Taxpayer-B by gift on Jan. 1, 2018 and sells another 200 shares to Taxpayer-B on Feb. 15, 2018. According to the United States District Court, as discussed in class, how much, if any, dividend income must Taxpayer-B realize in 2018 (both Taxpayer-A and Taxpayer-B are cash basis)?

a.$400

b. $0

c. $800

d. none of the choices are correct

e. $200