On September 15, 2020, the Board of Directors of MML Co. declares a $15/share dividend. The dividend is payable on November 15, 2020 to shareholders of record on October 15, 2020.

As of September 14, 2020, Richard owned 500 shares of MML Co.s stock.

On October 1, 2020, Richard sold 170 of the shares to Jane for their FMV, he also sold 35 of the shares to Natalie and gave 80 of the shares to Nadia (her daughter).

As of October 15, 2020, Richard, Jane, Natalie and Nadia are all shareholders of record. Who gets taxed and on how much?

a) Richard = $4,425; Jane = $2,550; Natalie = $525; Nadia = $1,200

b) Richard = $3,225; Jane = $2,550; Natalie = $525; Nadia = $0

c) Richard = $4,425; Jane = $2,550; Natalie = $525; Nadia = $0

d) Richard = $3,225; Jane = $2,550; Natalie = $525; Nadia = $1,200