Jared owns $3,000$ out of the $5,000$ outstanding shares of AussieInc. The other shareholders are all unrelated to Jared and Aussie has a large E&P balance. If Aussie redeems $1,250$ shares from Jared and no shares from any other shareholder, how will this stock redemption be treated for tax purposes?

Group of answer choices

This stock redemption is taxable as a dividend

This stock redemption is taxable as a sale of stock