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5. Rasputin owns 500 shares of the total outstanding stock of 750 shares for Magenta Company. His stock basis is $50,000. Rasputin, subsequently, sells 250 of his shares back to Magenta Company for $20,000. Magenta Company has E&P of $100,000. Rasputin's sale of his stock to Magenta Corporation will be treated as (show work, as to why): A) dividend income B) a sale transaction C) a return of capital D) some other treatment 6. Bryan owns 25% of Raisman Corporation's single class of stock (Bryan owns 500 of 2,000 outstanding shares). Bryan's basis in the stock is $110,000. Raisman's E&P is $132,000. If Raisman redeems 100 of Bryan's stock for $28,000, Brian must report dividend income (if any) of (show all work and explain your answer): A) SO. B) $11,200. C) $16.800 D) $28,000 14