At the beginning of the current year ACME, Inc. has two shareholders: Shareholder 1 owns 60% of the stock and Shareholder 2 40%. Shareholder 1 has a basis in their stock of $200,000 and Shareholder 2 has basis of $150,000. The shareholders are not related to one another. ACMEs Current E&P for the year is $500,000. During the year ACME makes the following stock redemptions: Redemption 1: Purchases 10% of each of the shareholders shares for a total of $100,000 (split equally). Shareholder 1s basis in the stock sold was $20,000 and shareholder 2 is $10,000. Redemption 2: Purchase all of shareholder 2s remaining shares for $150,000. Required: How much does shareholder 2 include in their income for the year as a result of the two redemptions? Show work.