Question
Required information Skip to question [The following information applies to the questions displayed below.] Bedrock Incorporated is owned equally by Barney Rubble and his wife
Required information
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[The following information applies to the questions displayed below.]
Bedrock Incorporated is owned equally by Barney Rubble and his wife Betty, each of whom holds 1,240 shares in the company. Betty wants to reduce her ownership in the company, and it was decided that the company will redeem 620 of her shares for $25,300 per share on December 31 of this year. Bettys tax basis in each share is $6,450. Bedrock has current E&P of $10,170,000 and accumulated E&P at the beginning of the year of $50,930,000.
b. What is Bettys tax basis in the remaining 620 shares she owns in the company?
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