Ryan the sole shareholder of Hounders, Inc., a C corp., receives a distribution of $100,000 from Hounders on December 31, 2017. Hounders current E&P at the time of the distribution was $80,000 and they had a deficit in accumulated E&P of $30,000. Ryans basis in his shares prior to the distribution was $35,000. Assume Ryans marginal tax rate is 28%. Which of the following statements (a-d) is true regarding this distribution?

	A.	None of the above is true.
	B.	Ryan recognizes a dividend of $80,000.
	C.	Ryan recognizes a LTCG of $65,000.
	D.	Ryan recognizes a dividend of $100,000.
	E.	Ryan recognizes a dividend of $50,000 and a LTCG of $15,000.