Prior to December 31, 2021, Emily, owned 90 shares of the stock of Almond Corporation ("AC") and Almond owned the remaining 110 shares. Prior to December 31, 2021, each share had a stock basis of $10,000. AC's 2021 full-year earnings and profits ("E&P") was $1 million and its accumulated E&P from prior years was also $1 million.

On December 31, 2021, AC redeemed 30 shares of the stock of AC from Emily for $1 million, which represented the fair market value of the shares.

What was the tax treatment to Emily of the stock redemption under section 302(b)(2)? (Please do not consider the treatment of the redemption transaction under sections 302(b)(1) or 302(b)(3).

Group of answer choices

No taxable income or loss

$300,000 of taxable income

$700,000 of taxable income

$1 million of taxable income