Y Corporation is owned equally by D, E, and F, each of whom own 200 shares in the corporation. D, E, and F are not related shareholders. D redeems 60 shares of his stock, receiving $80,000 from the corporation. Y Corporation's earnings and profits total $100,000. What are the tax consequences to D of the redemption, assuming D has a $10,000 basis in the shares redeemed.

a. $70,000 dividend

b. $80,000 dividend

c. $70,000 capital gain

d. $80,000 capital gain

Short explanation would be helpful.