The Outstanding Stock of Riccardo Corporation Is Owned as Follows

The outstanding stock of Riccardo Corporation is owned as follows: $\begin{array} { l l } \text { Robert } & \text { 100 shares } \\\text {Megan (Robert's daughter) } & 100 \text { shares } \\\text { Kyle (Robert's cousin) } & 100 \text { shares } \\\text { RMD, Inc. } &\underline{ \text { 100 shares }} \\\text { Total shares autstanding } & \text { 400 shares }\end{array}$

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