Flintstone Company is owned equally by Fred Stone and his sister Wilma, each of whom holds...

 

 

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Flintstone Company is owned equally by Fred Stone and his sister Wilma, each of whom holds 2,300 shares in the company. Wilma wants to reduce her ownership in the company, and it was decided that the company will redeem 400 of her shares for $26,200 per share on December 31 of this year. Wilma's income tax basis in each share is $5,150. Flintstone has current E&P of $12,080,000 and accumulated E&P at the beginning of the year of $50,020,000. b. What is Wilma's income tax basis in the remaining 1,900 shares she owns in the company? Income tax basis in remaining shares Flintstone Company is owned equally by Fred Stone and his sister Wilma, each of whom holds 2,300 shares in the company. Wilma wants to reduce her ownership in the company, and it was decided that the company will redeem 400 of her shares for $26,200 per share on December 31 of this year. Wilma's income tax basis in each share is $5,150. Flintstone has current E&P of $12,080,000 and accumulated E&P at the beginning of the year of $50,020,000. b. What is Wilma's income tax basis in the remaining 1,900 shares she owns in the company? Income tax basis in remaining shares