Darryl,a Cash Basis Taxpayer,gave 1,000 Shares of Copper Company Common

Darryl,a cash basis taxpayer,gave 1,000 shares of Copper Company common stock to his daughter on September 29,2010.Copper Company is a publicly held company that has declared a $1.00 per share dividend on September 30th every year for the last 20 years.Just as Darryl had expected,Copper Company declared a $1.00 per share dividend on September 30th,payable on October 15th,to stockholders of record as of October 10th.The daughter received the $1,000 dividend on October 18,2010.

A) Darryl must recognize the $1,000 dividend as his income because he knew the dividend would be paid.
B) Darryl must recognize $750 of the dividend because he owned the stock for three-fourths of the year.
C) Darryl must recognize the income of $1,000 because he constructively received the $1,000.
D) The daughter must recognize the income because she owned the stock when the dividend was declared and she received the $1,000.
E) None of the above.