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 1,360 shares in the company. Betty wants to reduce her ownership in the company, and it was decided that the company will redeem 680 of her shares for $26,400 per share on December 31 of this year. Betty's tax basis in each share is $6,150. Bedrock has current E&P of $10,870,000 and accumulated E&P at the beginning of the year of $50,870,000. 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? Dividend 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 1,360 shares in the company. Betty wants to reduce her ownership in the company, and it was decided that the company will redeem 680 of her shares for $26,400 per share on December 31 of this year. Betty's tax basis in each share is $6,150. Bedrock has current E&P of $10,870,000 and accumulated E&P at the beginning of the year of $50,870,000. b. What is Betty's tax basis in the remaining 680 shares she owns in the company? Income tax basis in remaining shares 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 1,360 shares in the company. Betty wants to reduce her ownership in the company, and it was decided that the company will redeem 680 of her shares for $26,400 per share on December 31 of this year. Betty's tax basis in each share is $6,150. Bedrock has current E&P of $10,870,000 and accumulated E&P at the beginning of the year of $50,870,000. c. Assuming the company did not make any dividend distributions this year, by what amount does Bedrock reduce its E&P as a result of the redemption? Reduction in E&P