QUESTION 17 Dionne Corporation has one hundred (100) shares of stock outstanding It redeems forty (40) shares of stock for $200,000 at a time when te Eamings And Prota (EAP) are $200,000. What would be the reduction in Earnings And Profita (EAP) of Dionne Corporation a as a Stock Redemption under section 302(b)) result of this redemption? (Assume that the redemption ques O $200,000 O $100,000. $ 20,000. $ 80,000. QUESTION 18 Lawanna Corporation has one hundred (100) shares of stock outstanding which are owned by Rosalind and Rhonda who are unrelated. Rosalind owns forty (40) shares of the stock and Rhonda owns sixty (60) shares of the stock. Lawanna Corporation redeems twelve (12) of Rosalind's shares of stock for $500 per share. Rosalind paid $300 per share for her stock three (3) years ago. Assuming Lawanna Corporation has significant Eamings And Profits (E&P), which of the following is correct regarding the Stock Redemption? Rosalind has a Long-Term Capital Gain of $3,600. O Rosalind has a Long-Term Capital Gain $6,000. O Rosalind has a Long-Term Capital Gain of $2,400. O Rosalind has Dividend Income of $6,000.