Helen Receives Stock Worth $1,000 from Her Grandfather as a Graduation

Helen receives stock worth $1,000 from her grandfather as a graduation gift in May 2016 (her grandfather paid $100 for the stock many years ago) .In December 2016,she receives a $100 cash dividend on the stock.Helen is not taxed on the value of the stock received in 2016,but she must include the $100 cash dividend in her 2016 gross income.Which of the following form the basis for this treatment?
I.Capital Recovery Concept.
II.Legislative Grace Concept.
III.All-inclusive Income Concept.
IV.Constructive Receipt Doctrine.
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A) Statements II and III are correct.
B) Statements I and IV are correct.
C) Statements II, III, and IV are correct.
D) Statements II and IV are correct.
E) Only statement I is correct.