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Comet Company is owned equally by Pat and his sister Pam, each of whom holds 120 shares in the company. Pam wants to reduce her ownership in the company, and it was decided that the company will redeem 60 of her shares for $1,200 per share on December 31,203. Pam's adjusted tax basis in each share is $600. Comet has total E\&P of $260,000. What are the tax consequences to Pam because of the stock redemption? Multiple Choice $36,000 capital gain and a tax basis in each of her remaining shares of $120. $72,000 dividend and a tax basis in each of her remaining shares of $60. $72,000 dividend and a tax basis in each of her remaining shares of $120. $36,000 capital gain and a tax basis in each of her remaining shares of $600. Abbot Corporation reported a net operating loss of $600,000 in 203, which the corporation elected to carry forward to 204. Included in the computation of the taxable loss was regular depreciation of $300,000 (E\&P depreciation is $85,000), first-year expensing under $179 of $70,000, and a dividends received deduction of $12,000. The corporation's current E\&P for 203 would be: Multiple Choice ($600,000) ($433,000). ($317,000). ($230,000)