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Charles is the sole shareholder of Kensington Corporation and owns 2,000 shares of stock. Charles' basis in the shares is $80,000. Kensington Corp redeems 40%

Charles is the sole shareholder of Kensington Corporation and owns 2,000 shares of stock. Charles' basis in the shares is $80,000. Kensington Corp redeems 40% of Elizabeth's stock for $60,000. The redemption is treated as a dividend.

After the redemption, how many shares of stock does Charles have and what is the total basis?

Shares of stock:

Total basis:

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