John works for ABC Corp., which has an Employee Stock Ownership Plan $($ESOP$).$ On January $1,2024,$ John is allocated $500$ shares of ABC Corp. stock through the ESOP. The fair market value $($FMV$)$ of the stock on the allocation date is $$40$ per share. John is fully vested in the ESOP shares on January $1,2028.$ John retires on January $1,2029,$ and receives a lump sum distribution of the $7,500$ shares of stock that were held in the ESOP. The FMV of all the shares was $$225,000$ when they were first allocated to John and $$337,500$ when John retired. In $2030,$ he sold $750$ shares for $$35,000.$ a$.$ In $2024,$ John will recognize $$0$$$20,000$of income and ABC will deduct related to the shares allocated to John