At the beginning of the year SKYNT, Inc has a balance accumulated E&P of $30,000. During the current year the corporation generates current E&P of $200,000. The E&P is allocated as a current deficit of ($10,000) from 01/01-06/30, and current positive E&P of $210,000 from 07/01-12/31. It also makes the following Distributions: Cash in the amount of $120,000 on 6/30 . Property with a FMV and Book Value equal to $400,000 on 12/31. The property is also subject to a liability of $40,000 which the shareholders assumed. The shareholders' total basis in their stock is $110,000. Required: How much income will the shareholders have to recognize as a result of the second distribution?