The Outstanding Stock of Riccardo Corporation Is Owned as Follows

The outstanding stock of Riccardo Corporation is owned as follows: $\begin{array}{ll}\text { Robert } & 100 \text { shares } \\\text { Megan (Robert's daughter) } & 100 \text { shares } \\\text { Kyle (Robert's cousin) } & 100 \text { shares } \\\text { RMD, Inc. } & 100 \text { shares }\\\text { Total shares outstanding }& 400 \text { shares }\\\end{array}$ Robert owns 50% of RMD, Inc. stock. The rest of RMD, Inc. stock is owned by unrelated parties. Riccardo Corporation redeems 90 of Kyle's shares of stock for $9,000 in the only redemption transaction this year. Kyle's basis for his stock is $10 per share. Riccardo Corporation has $300,000 in E&P. How much capital gain or dividend income does Kyle recognize as a result of this redemption?

A) $9,000 dividend income
B) $8,100 capital gain
C) $8,000 capital gain
D) 0