Green Co Transferred a Small Piece of Land to One of of Its

Green Co. transferred a small piece of land to one of its shareholders as a dividend in kind. The land originally cost $50,000 and had a fair market value of $175,000 at the time of the transfer. The corporation will realize ________, and the shareholder will realize _.

A) no tax effect; a dividend of $125,000.
B) a dividend of $125,000; no tax effect.
C) a capital gain of $50,000; a dividend of $125,000.
D) a capital gain of $125,000; a dividend of $175,000.