Mary's Mother, Jill, passes away. At death her IRA has a fair market value of $200,000. The non-deductible contributions on form 8707 are $20,000. Federal estate taxes paid on the IRA were $80,000. Assume a few months later, Mary receives the IRA with a vale of $202,000 and decides to take a $50,000 distribution. How will this transaction be reported on their income tax return?