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Joe Johnson received 100 shares of Delta Inc. preferred as a tax-free stock dividend because of his ownership of its common stock. At the time of its distribution, the preferred had a value of $20 per share. Had a cash dividend of equal value been paid instead, 75% of it would have been taxable as a dividend. If Johnson sells the preferred for $30 per share, how much of his amount realized will be taxed as ordinary income (treated as a dividend)?
A.$750
B.$1,000
C.$1,500
D.$3,000
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