Y Corporation is owned qually 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 tsock, receiving 80,000 from the corporation. Y Corporation's earnings and profits total $300,000. What are the tax consequences to D of the redmption assuming D has a $10,000 basis in the shares redeemed?

a. 70,000 divdiend.

b. 80,000 dividend.

c. 70,000 capital gain.

d. 80,000 capital gain.