Bedrock Incorporated is owned equally by Barney Rubble and his wife Betty, each of whom holds $1,000$ shares in the company. Betty wants to reduce her ownership in the company, and it was decided that the company will redeem $500$ of her shares for $$25,000$ per share on December $31$ of this year. Betty's tax basis in each share is $$5,000.$ Bedrock has current E&P of $$10,000,000$ and accumulated E&P of $$50,000,000.$

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

B$.$ What is betty tax basis in the remaining $500$ shares she owns in the company

C$.$ Assuming the company did not make any dividend distribution this year, by what amount does bedrock reduce its E&P as a result of the redemption?