Required information [The following information applies to the questions displayed below.] Bedrock Incorporated is owned equally...

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Required information [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 1,320 shares in the company. Betty wants to reduce her ownership in the company, and it was decided that the company will redeem 660 of her shares for $27,600 per share on December 31 of this year. Betty's tax basis in each share is $7,450. Bedrock has current E&P of $10,720,000 and accumulated E&P at the beginning of the year of $50,990,000. a. What are the amount and character (capital gain or dividend) recognized by Betty as a result of the stock redemption, assuming only the "substantially disproportionate with respect to the shareholder" test is applied? Required information [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 1,320 shares in the company. Betty wants to reduce her ownership in the company, and it was decided that the company will redeem 660 of her shares for $27,600 per share on December 31 of this year. Betty's tax basis in each share is $7,450. Bedrock has current E&P of $10,720,000 and accumulated E&P at the beginning of the year of $50,990,000. a. What are the amount and character (capital gain or dividend) recognized by Betty as a result of the stock redemption, assuming only the "substantially disproportionate with respect to the shareholder" test is applied?