Flintstone Company is owned equally by Fred and his sister Wilma, each of whom holds $3,500$ shares in the company. Wilma wants to reduce her ownership in the company, and it was decided that the company will redeem $505$ of her shares for $$26,400$ per share on December $31$ of this year. Wilma's tax basis in each share is $$8,150.$ Flintstone has current E&P of $$10,650,000$ and accumulated E&P at the beginning of the year is $$50,880,000$a$.$ What are the amount and character $($capital gain or dividend$)$ recognized by Wilma 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 $2,995$ shares Wilma owns in the company? c$.$ By what amount does Flintstone reduce its E&P because of the redemption?