Ridge Corp., a calendar-year C corporation, made a nonliquidating cash distribution to its shareholders of $1 million with respect to its stock. At that time, Ridges current and accumulated earnings and profits totaled $750,000, and its total paid-in capital for tax purposes was $10 million. Ridge had no corporate shareholders. Ridges cash distribution Was taxable as $750,000 in dividends to its shareholders Reduced its shareholders adjusted bases in Ridge stock by $250,000
A.	II only.
B.	Both I and II.
C.	I only.
D.	Neither I nor II.