J Died This Year

J died this year.His sole asset was 80 shares of D Corporation stock, which were worth $800,000 (basis $200 per share) .The remaining 20 shares of the stock were owned by J's son.In J's will, he provided that all of the stock go to his son.Estate taxes were $123,000, and funeral and administrative expenses were $27,000.In order to pay the death taxes, the corporation redeemed 20 shares of stock from J's estate for $200,000.Assuming the corporation has substantial E&P, the estate will report

A) No gain or loss or other income from the redemption distribution
B) $196,000 capital gain
C) $ 150,000 capital gain and $50,000 dividend
D) $50,000 dividend
E) None of the above