Flintstone Company is owned equally by Fred and his sister Wilma, each of whom holds 2,800 shares in the company. Wilma wants to reduce her ownership in the company, and it was decided that the company will redeem 595 of her shares for $27,100 per share on December 31 of this year. Wilma's tax basis in each share is $9,700. Flintstone has current E&P of $10,220,000 and accumulated E&P at the beginning of the year is $50,120,000. What are the amount & character recognized by Wilma because of the stock redemption assuming only the substantially disproportionate with respect to the shareholder test is applied
