Coleman Corporation (E&P of $720,000) has 3,000 shares of common stock outstanding. Fred owns 1,500 shares and his wife, Angelia, owns 1,500 shares. Fred and Angelia each have a basis of $90,000 in their Coleman Corporation stock. In the current year, Coleman Corporation redeems 1,000 shares from Fred for $250,000. With respect to the distribution in redemption of Fred's stock in Coleman Corporation:

Group of answer choices

Fred has dividend income of $250,000.

Fred has a capital gain of $190,000

Fred has a $30,000 basis in his 500 remaining shares.

Coleman Corporation has a $240,000 reduction in E&P.