Tony Brown Sold 5000 of His Shares Back to ABC

Tony Brown sold 5000 of his shares back to ABC Co. for $25,000 during the current fiscal year. He purchased these shares from Carrie White three years ago for $15,000. Carrie had originally purchased the shares from the corporate treasury for $10,000. Which of the following tax consequences will Tony recognize?

A) He will recognize a deemed dividend of $10,000 and no capital gain or loss.
B) He will recognize a deemed dividend of $15,000 and a capital loss of $5,000.
C) He will recognize a deemed dividend of $15,000 and a capital gain of $10,000.
D) He will recognize a deemed dividend of $10,000 and a capital gain of $10,000.