(9) Extensive Enterprises Incorporated has taxable income of $250,000 for the year. It also had the following: (a) $16,500 in net capital losses (carried to another year); (b) $32,000 in federal income tax payments; (c) a $4,000 dividend-received deduction; and (d) $8,000 tax exempt interest income. Compute the company's E&P for the year. (5 Points) (10) Pendaflex Corporation is acquiring Avery Corporation. Paramjeet owns a 5% interest in Avery Corporation that he acquired 7 years ago for $75,000. Paramjeet exchanges his Avery Corporation stock for $25,000 in cash and 4% of Pendaflex Corporation's stock worth $125,000. (a) What is Paramjeet's realized and recognized gain and what is his basis in the Pendaflex Corporation stock? (10 Points) (b) If Avery Corporation's E&P at the time of the reorganization is $500,000, how much of Paramjeet's recognized gain is dividend income? (5 Points)