4Hannah, Greta, and Winston own the stock in Redpoll Corporation (E & P of $900,000) as follow Hannah, 600 shares; Greta, 400 shares; and Winston, 1,000 shares. Greta is Hannah's cousin, and Winston is Hannah's brother. Redpoll Corporation redeems 400 of Hannah's shares basis of ($55,000) for $250,000. Hannah purchased the stock three years ago as an investment basis of $55,000, with respect to the stock redemption, Hannah has