Sonny Corporation has made paint and paint brushes for the past ten years. Sonny Corporation is owned equally by George, an individual, and Oak Corporation. Sonny Corporation has $100,000 of accumulated and current E&P. Both George and Oak Corporation have a basis in their stock of $10,000. Sonny Corporation discontinues the paint brush operation and distributes assets worth $10,000 each to George and Oak Corporation in redemption of 20% of their stock. Due to the distribution, George and Oak Corporation must report: George Oak Corporation $10,000 dividend $10,000 dividend $10,000 dividend $8,000 capital gain $8,000 capital gain $8,000 capital gain $8,000 capital gain $10,000 dividend