Bedrock Incorporated is owned equally by Barney and his wife Betty, each of whom holds $1,280$ shares in the company. Betty wants to reduce her ownership in the company, and it was decided that the company will redeem $640$ of her shares for $$26,800$ per share on December $31$ of this year. Betty's tax basis in each share is $$5,450.$ Bedrock has current E&P of $$10,150,000,$ and accumulated E&P was $$50,500,000$ at the beginning of the year.

a$.$ What are the amount and character $($capital gain or dividend$)$ recognized by Betty because of the stock redemption, assuming only the "substantially disproportionate with respect to the shareholder" test is applied?

b$.$ Given your answer to part $($a$),$ what is the tax basis in the remaining $640$ shares Betty owns in the company?

c$.$ By what amount does Bedrock reduce its E&P because of the redemption?