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Flintstone Corporation is owned equally by Fred and his sister Wilma, each of whom holds 1,500 shares in the company. Wilma wants to reduce her
Flintstone Corporation is owned equally by Fred and his sister Wilma, each of whom holds 1,500 shares in the company. Wilma wants to reduce her ownership in the company, and it was decided that the company will redeem 300 of her shares for $34,100 per share on December 31 of this year. Wilma's tax basis in each share is $7,550. Flintstone has current E&P of $10,600,000 and accumulated E&P at the beginning of the year is $50,550,000. b. Given your answer to part (a), what is the tax basis in the remaining 1,200 shares Wilma owns in the company
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