Zoe, an individual, received Preferred Stock as a Nontaxable Stock Dividend on the Common Stock she has held as an investment for four (4) years in Jawdat Corporation. The stock had a Section 306 Taint of $200,000 and Zoe properly allocated a basis of $40,000 to the Preferred Stock. One (1) month after receiving the Nontaxable Stock Dividend, Zoe sells the Preferred Stock to Escobar (an unrelated party) for $270,000. Under these circumstances, which of the following is correct? Zoe has Ordinary Income of $200,000 and a Long-Term Capital Gain of $30,000. Zoe has Ordinary Income of $270,000. O Zoe has Ordinary Income of $245,000 and a Tax-Free Return Of Capital of $25,000. O Zoe has Ordinary Income of $230,000 and a Long-Term Capital Gain of $40,000.