In August,Sunglow Corporation Declares a $4 Dividend Out of E

In August,Sunglow Corporation declares a $4 dividend out of E & P on each share of common stock to shareholders of record on October 1.Elaine and Tom each purchase 100 shares of Sunglow stock on September 1.On September 15,Elaine also purchases a short position in Sunglow.Tom sells 50 of his shares on October 15 and continues to hold the remaining 50 shares through the end of the year.Elaine closes her short position in Sunglow on December 15.With respect to the dividends,which of the following is correct?

A) Tom will have $200 of qualifying dividends subject to reduced tax rates and $200 of ordinary income.
B) Elaine will have $400 of qualifying dividends subject to reduced tax rates and $400 of ordinary income (from dividends paid on the short position of Sunglow stock) .
C) All $800 of Elaine's dividends will qualify for reduced tax rates.
D) All $400 of Tom's dividends will qualify for reduced tax rates.
E) None of the above.