What is the solution to this problem?

Flintstone Company is owned equally by Fred Stone and his sister Wilma, each of whom hold 2,400 shares in the company. Wilma wants to reduce her ownership in the company, and it was decided that the company will redeem 480 of her shares for $30,700 per share on December 31 of this year. Wilmaâs income tax basis in each share is $7,900. Flintstone has current E&P of $10,930,000 and accumulated E&P of $50,210,000.
a. What is the amount and character (capital gain or dividend) recognized by Wilma as a result of the stock redemption, assuming only the "substantially disproportionate with respect to the shareholder" test is applied?
b. What is Wilmaâs income tax basis in the remaining 1,920 shares she owns in the company?
c. Assuming the company did not make any dividend distributions this year, by what amount does Flintstone reduce its E&P as a result of the redemption?

The responsibility of Wilma in the wake of taking the redemption is in reality more than the 40% (80% x 50%), so she fails the considerably disproportionate test.

Hence, dividend recognition = $1,47,36,000

b)

Wilma's personal income tax expense premise in excess shares can be determined by summing back the unused tax premise of 480 offers reclaimed to the premise of her leftover offers 1920.

unused tax premise of 480 shares = 480 × $7900 = $37,92,000

premises of the remaining shares = 1920 × $7900 = $1,51,68,000

In the remaining shares, WIlma income tax = $37,92,000 + $1,51,68,000

= $1,89,60,000

c)

Flintstone will make the decrease in its E&P by a measure of profit perceived by Wilma =$1,47,36,000