Clark, Bruce, and Diana, unrelated individuals, own all of the stock in Trinity Corporation (E & P of $1.2 million) as follows: Clark, 1,500 shares; Bruce, 300 shares; and Diana, 200 shares. Trinity redeems 900 of Clark’s shares (basis of $210,000 in the shares redeemed) for $625,000. With respect to the distribution in redemption of the stock:

a. Clark has a capital gain of $415,000.

b. Clark has a capital gain of $625,000.

c. Clark has dividend income of $415,000.

d. Clark has dividend income of $625,000.

e. None of the above.