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Problem $18-53($LO $18-4)($Algo$)$

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Flintstone Company is owned equally by Fred and his sister Wilma, each of whom holds $1,500$ shares in the company. Wilma wants to reduce her ownership in the company, and it was decided that the company will redeem $300$ of her shares for $$34,100$ per share on December $31$ of this year. Wilma's tax basis in each share is $$7,550.$ Flintstone has current E&P of $$10,600,000$ and accumulated E&P at the beginning of the year is $$50,550,000.$

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?