Week 4 Application Assignment Bcation Assignment Seved Help Save& Ex. Sut Comet Company is owned equaly by Pat and his sister Pam, each of whom hold 170 shares in the company. Pam wants to reduce her ownership in the company, and it was decided that thee company will redeem 85 of her shares for $1700 per share on December 31 20x3. Pam's income tax basis in each share is $850. Comet has total E&P of $285,000. What are the tax consequences to Pam because of the stock redemptionh Multiple Choice $72.250 capital gain and a tax basis in each of her remaining shares of $850 $72.250 capital gain and a tax basis in each of her remaining shares of $170. $144.500 dividend and a tax basis in each of her remaining shares of $170. $144,500 dividend and a tax basis in each of her remaining shares of $85 Week 4 Application Assignment ication Assignment Saved Save&Exit Help Su Viking Corporation is owned equally by Sven and his wife Olga, each of whom hold 100 shares in the company. Viking redeemed 70 shares of Sven's stock for $1,700 per share on December 31, 20x3. Viking has total E&P of $490,000. What are the tax consequences to Viking because of the stock redemption? Mutiple Choice No reduction in E&P because of the exchange A reduction of $119.000 in E&P because of the exchange. A reduction of $171,500 in E&P because of the exchange. A reduction of $343000 in E&P because of the exchange