ACE is an S corporation whose sole shareholder is Abe. After considering the current year's income Abe has a basis is his stock of $120,000 and ACE has $200,000 in its accumulated adjustments account. ACE distributes property to Abe on the last day of the tax year with an adjusted basis of $80,000 and fair market value of $40,000. How much income does Abe recognize from this distribution?