Ramen Foods Corporation is owned equally by Steve and his wife, Diane, each of whom holds 100 shares in the company. Ramen Foods redeemed 75 shares of Steve's stock for $2,000 per share on December 31, 20X3. Ramen Foods has total E&P of $500,000. What are the tax consequences to Ramen Foods from the stock redemption? A reduction of $375,000 in E&P because of the exchange. A reduction of $150,000 in E&P because of the exchange. A reduction of $187,500 in E&P because of the exchange. No reduction in E&P because of the exchange. Samantha owns 60 percent of the stock of Software Design Corporation (600 shares). Samantha's father Ron owns the remaining 40 percent (400 shares). Samantha would like the corporation to redeem 200 of her shares. Will this stock redemption of Samantha's stock be treated as an exchange under the "substantially disproportionate" test? No, because she does not meet the substantially disproportionate test due to the constructive ownership rules. Yes, because she will own less than 50 percent of the stock directly after the redemption. All stock redemptions involving individuals are treated as exchanges. Yes, because the corporation redeemed one third of her shares