Randy, age 63, is a participant in the stock bonus plan of XYZ, Inc., a closely held corporation. Randy received contributions in shares of XYZ stock to the stock bonus plan and XYZ, Inc. had the following income tax deductions: Value per Share Years # of Shares (At Time of Contribution) Year 1 100 $12 Year 2 125 $15 Year 3 150 $8 Year 4 200 $18 Year 5 400 $20 TOTAL 975 $14.60 Simple Average Price Randy terminates employment in Year 6 and takes a distribution from the plan of 975 shares of XYZ, Inc., having a fair market value of $24,000. Which of the following correctly describes Randy's tax consequences for Year 6 from this distribution if Randy does not sell the XYZ stock until Year 8? Randy has ordinary income of $15,875 in Year 6 Randy has ordinary income of $15,875 and long-term capital gain of $8,125 in Year 6 O Randy has a long-term capital gain of $8,125 in Year 6 Randy terminates employment in Year 6 and takes a distribution from the plan of 975 shares of XYZ, Inc., having a fair market value of $24,000. Which of the following correctly describes Randy's tax consequences for Year 6 from this distribution if Randy does not sell the XYZ stock until Year 8? Randy has ordinary income of $15,875 in Year 6 Randy has ordinary income of $15,875 and long-term capital gain of $8,125 in Year 6 Randy has a long-term capital gain of $8,125 in Year 6 Randy has long term capital gain of $24,000 in Year 6