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Required information Problem 18.53 (LO 18.4) (Algo) [The following information applies to the questions disployed below] Flintstone Company is owned equally by Fred and his

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Required information Problem 18.53 (LO 18.4) (Algo) [The following information applies to the questions disployed below] Flintstone Company is owned equally by Fred and his sister Wilma, each of whom holds 3,900 shares in the company Wilma wants to reduce her ownership in the company, and it was decided that the company will redeem 650 of her shares for $30,600 per share on December 31 of this yeat. Wilma's tax basis in each share is $9,400. Flintstone has current E\&P of $10,120,000 and accumulated E\&P at the beginning of the year is $50,720,000 Problem 18-53 Part a (Algo) a. What are the amount and character (capital gain or dividend) recognized by Wilma because of the stock redemption, assuming only the "substantially disproportionate with respect to the shareholder" test is applied? Required information Problem 18.53 (LO 18.4) (Algo) (The following information apples to the questions displayed below] Flintstone Company is owned equally by Fred and his sister Wilma, each of whom holds 3,900 shares in the company Wilma wants to reduce her ownership in the company, and it was decided that the company will redeem 650 of her shares. for $30.600 per share on December 31 of this year. Wilma's tax basis in each share is $9.400. Flintstone has current ERP of $10,120.000 and accumulated E\&P at the beginning of the year is $50.720.000 Problem 18-53 Part c (Algo) c. By what amount does Fintstone reduce its E\&P because of the redemption? Required information Problem 18-53 (LO 18-4) (Algo) The following information applies to the questions displayed below; Flintstone Company is owned equally by Fred and his sister Wima, each of whom holds 3,900 shares in the company. Wilmo wants to reduce her ownership in the company, and it was decided that the company will redeem 650 of her shares for $30,600 per share on December 31 of this year. Wilma's tax basis in each share is $9,400. Flintstone has current E\&P of $10,120,000 and accumulated E\&P at the beginning of the year is $50,720,000. Problem 18-53 Part b (Algo) b. Given your answer to part (a), what is the tax basis in the remaining 3,250 shares Wilma owns in the company

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