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Bob, Carl, and Dan, unrelated individuals, own 30 shares, 30 shares, and 40 shares, respectively, in JH Corporation. JH has 100 shares outstanding and E&P

Bob, Carl, and Dan, unrelated individuals, own 30 shares, 30 shares, and 40 shares, respectively, in JH Corporation. JH has 100 shares outstanding and E&P of $200,000. The corporation redeems 20 shares of Dan’s stock for $30,000. Dan paid $200 a share for the stock two years ago. What will be tax consequences to Dan upon redemption?

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