During 2000, Lianne Majoro Received Income Dividends of $850 and Capital

During 2000, Lianne Majoro received income dividends of $850 and capital gain distributions of $540.The tax consequence is that

A) both amounts must be included as taxable income.
B) only the dividends are taxable.
C) only the capital gains are taxable.
D) both amounts are tax exempt.
E) It is impossible to determine the tax consequences for dividend income and capital gain distributions unless the shares of the mutual fund are sold to another investor.