Wyatt Corporation has two hundred (200) shares of outstanding Common Stock which are owned by three (3) unrelated individuals as follows: John owns one hundred twenty (120) shares, Carl owns sixty (60) shares and James owns twenty (20) shares. During the year of 2019, Wyatt Corporation redeemed (as a qualifying Stock Redemption) sixty (60) shares of stock from Carl for $100,000. Wyatt Corporation had Earnings And Profits (E&P) before the Redemption of $200,000. As a result of this Redemption, the Earnings And Profits (E&P) of Wyatt Corporation will decrease by:

1. $60,000

2. $50,000

3. $100,000

4. $90,000