Alice Jones is a participant in Shield, Inc.’s ESOP. Over the years, Shield, Inc. has contributed stock with a cost basis of \($100,000\) to Alice’s account. Alice is planning to retire, and the stock has a fair market value of \($300,000.\) She anticipates selling the stock at some point in the future.

What are the income tax implications if Alice takes a lumpsum distribution at retirement?

A. \($300,000\) as ordinary income in the current tax year.

B.\($100,000\) as ordinary income in the current tax year, \($200,000\) as a long-term capital gain/loss when she sells the stock.

C.\($200,000\) as ordinary income in the current tax year,\($100,000\) as a long-term capital gain/loss when she sells the stock.

D. \($300,000\) as a long-term capital gain/loss when she sells the stock.