What is the tax treatment for a shareholder participating in a common stock's dividend reinvestment program?

A) The shareholder is treated as if he received a cash dividend equal to the fair market value of the shares purchased under the plan. 

B) The reinvested dividends are treated like a stock dividend, and no income is recognized. 

C) The shareholder is treated as if he received a cash dividend equal to the amount paid for the shares purchased under the plan or equal to his cost. 

D) The shareholder may elect to recognize the dividend in a later year when he sells the stock

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