Hazel, Emily, and Frank are families relatives, own the stock in Wren Corporation as follows: Hazel, 100 shares; Emily, 100shares; Frank, 100 shares. Hazel redeems 25 shares(the basis for stock is $2000/share) for $100,000. What the tax effect for Hazel?

1. Hazel has long term capital gain for $60,000
2. Hazel has long term capital gain for $100,000
3. Hazel has dividend income $100,000
4. Hazel has $0 and it qualified partial redemption