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Leon owns 400 shares of the 1,000 outstanding shares of Crane Corporation (that has earnings and profits of $650,000). None of the other shareholders of Crane Corporation are related to Leon. Leon acquired his Crane Corporation shares ten years ago for $60,000. Crane Corporation has operated several trades or businesses for more than five years. In the current year, Crane sells the assets of one of those trades or businesses and distributes the proceeds from the asset sale to the shareholders in a pro rata stock redemption. In this transaction, Leon receives $180,000 in redemption of 250 shares of Crane Corporation. As a result of this transaction, how much gain or loss will Leon recognize and what will be the character of the gain or loss?

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