Elijah Owns 20% of Park Corporation's Single Class of Stock

Elijah owns 20% of Park Corporation's single class of stock. Elijah's basis in the stock is $8,000. Park's E&P is $28,000. If Park redeems all of Elijah's stock for $48,000, Elijah must report dividend income of

A) $40,000.
B) $0.
C) $28,000.
D) $48,000.