Flintstone Company is owned equally by Fred and his sister Wilma, each of whom holds 3,600 shares in the company. Wilma wants to reduce her ownership in the company, and it was decided that the company will redeem 680 of her shares for $28,000 per share on December 31 of this year. Wilma's tax basis in each share is $9,750. Flintstone has current E&P of $10,523,000 and accumulated E&P at the beginning of the year is $50,560,000. Problem 18-53 Part b (Algo) b. Given your answer to part (a), what is the tax basis in the remaining 2,920 shares Wilma owns in the company? Income tax basis in remaining shares Flintstone Company is owned equally by Fred and his sister Wilma, each of whom holds 3,600 shares in the company. Wilma wants to reduce her ownership in the company, and it was decided that the company will redeem 680 of her shares for $28,000 per share on December 31 of this year. Wilma's tax basis in each share is $9,750. Flintstone has current E&P of $10.523,000 and accumulated E&P at the beginning of the year is $50,560,000 Problem 18-53 Part a (Algo) 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? Dividend