Jasmine Lee Owns All of the Shares of Tee Ltd

Jasmine Lee owns all of the shares of Tee Ltd. Her adjusted cost base for these shares is $50,000. Because of declining sales, she has decided to wind up the Company under the provisions of ITA 88(2) and, after the assets have been sold and all corporate taxes paid, there is $2,000,000 available for distribution. The balances in the tax accounts of Tee Ltd. are as follows: If Jasmine properly files all elections that would minimize the tax effect of the distribution, of the following statements, which one is correct?

A) Jasmine will receive dividends subject to tax of $1,500,000 (before any gross up) , as well as a taxable capital gain of $25,000, when she receives the $2,000,000 distribution.
B) Jasmine will have a taxable capital gain of $975,000 when she receives the $2,000,000 distribution.
C) As a rollover provision is being used, there will be no current tax consequences when she receives the $2,000,000 distribution.
D) Jasmine will receive dividends subject to tax of $1,500,000 (before any gross up) , as well as a taxable capital gain of $225,000, when she receives the $2,000,000 distribution.