At age 50, Charles began receiving payments under a distribution method that provides for substantially equal payments over his life. He had no basis in the account. At age 58, after he received distributions totaling $14,000, he elected to receive the remaining benefits in a lump-sum of $155,000. What amount of the total distribution is subject to the early distribution penalty?

1) $0

2) $14,000.00

3) $155,000.00 - Please note this is not the correct answer as it was marked incorrect on my quiz.

4) $169,000.00