Buckeye company is equally owned by James and his brother Terrelle, each of whom own 500 shares in the company. Terrelle wants to reduce his ownership in the company, and it was decided that the company will redeem 200 of his shares for 5,000 per share on December 32,2013. Terrelles income tax basis in each share is 1,000. Buckeye has current e&p of 10,000,000 and accumulated e&p of 20,000,000. What is the amount and character, recognized by Terrelle because of the stock redemption