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Flintstone Company is owned equally by Fred Stone and his sister Wilma, each of whom holds 2,000 shares in the company Wiima wants to reduce

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Flintstone Company is owned equally by Fred Stone and his sister Wilma, each of whom holds 2,000 shares in the company Wiima wants to reduce her ownership in the company, and it was decided that the compary wall redeem 415 of her shares for $31,200 per share on December 31 of this year. Wilma's tax besis in each share is $8,200, Flintstone has current E\&P of $10,150,000 and accumulated ESP at the beginning of the year is $50,310,000 Problem 18.53 Part-a (Algo) a. What are the amount and charactec (capital pain or dividend) recognized by Wima as a tesult of the stock redempton, assuming only the "substantially disproporisonate with respect to the sharehoider" test is appled? Fintstone Company is owned equally by Fred Stone and his sister Wilma, each of whom holds 2,000 shares in the company. Wilma wants to reduce her ownership in the company, and it was decided that the company will redeem 415 of her shares for $31,200 per share on December 31 of this year. Wilma's tax basis in each share is $8,200. Flintstone has current E\&P of $10,150,000 and accumulated E\&P at the beginning of the year is $50,310,000. Problem 18-53 Part-b (Algo) b. What is Wilma's tax basis in the remaining 1,585 shares she owns in the company? Flintstone Company is owned equally by Fred Stone and his sister Wilma, each of whom holds 2,000 shares in the company. Wilma wants to reduce her ownership in the company, and it was decided that the company will redeem 415 of her shares for $31,200 per share on December 31 of this year. Wilma's tax basis in each share is $8,200. Flintstone has current E\&P of $10,150,000 and accumulated E\&P at the beginning of the year is $50,310,000. Problem 18-53 Part-c (Algo) c. Assuming the company did not make any dividend distributions this year, by what amount does Flintstone reduce its EaP as a result of the redemption

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