Moe, Larry, and Curley, 3 unrelated individuals, own the stock in Acme Corporation. Moe and Larry each own 30 shares and Curly owns 40 shares. Acme redeems 20 of Curlys shares (basis of $175,000) for $250,000. Acme has $700,000 of accumulated earnings and profits. As a result of this transaction, Curly has:

Ordinary Income of $75,000 Dividend Income of $250,000 No Income or Loss Capital gain of $75,000