1. The outstanding stock of Arne Corporation is owned as follows:

Anthony	100
Gabriella (Anthonys Daughter)	100
John (Anthonys Cousin)	100
Song Corporation	100

Total Shares Outstanding 400 shares

Anthony owns 50% of Song Corporation stock. The rest of Song Corporation stock is owned by unrelated parties. Arne Corporation has $300,000 in E&P. Arne Corporation redeems 90 of Anthonys shares of stock for a piece of land. This land has a FMV of $9,000 and a basis to the corporation of $6,000. Anthonys basis for his Arne stock is $10 per share (100 shares at $10 = $1,000). How much income or gain does Anthony recognize as a result of this redemption transaction?