Bedrock Incorporated is owned equally by Barney and his wife Betty, each of whom holds 550 shares in the company. Betty wants to reduce her ownership in the company, and it was decided that the company will redeem 275 of her shares for $24,800 per share on December 31 of this year. Betty's tax basis in each share is $5,750. Bedrock has current E&P of $10,350,000, and accumulated E&P was $50,640,000 at the beginning of the year. c. By what amount does Bedrock reduce its E&P because of the redemption? Reduction in E&P