On January 1, 2019, Providence Corporation had a Deficit (negative) in its Accumulated Earnings And Profits (E&P) of ($120,000). For the year of 2019, Providence Corporation had positive Current Earnings and Profits (E&P) of $80,000. On December 31,2019, Providence Corporation distributed $85,000 to its sole shareholder, Freddie. At the time of the distribution, Freddie had a basis of $30,000 in her stock in Providence Corporation. Freddies Taxable Dividend Income as a result of this distribution is:

1. $0
2. $80,000
3. $85,000
4. $30,000