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Kingbird Corporation ( E P of $800,000) has 1,000 shares of stock outstanding. That stock is held by Amata (550 shares) and Esteban (450 shares),...

Kingbird Corporation ( E & P of $800,000) has 1,000 shares of stock outstanding. That stock is held by Amata (550 shares) and Esteban (450 shares), who are unrelated individuals. Kingbird redeems 200 of Amata's shares for $1000 per share. Amata paid $300 per share for her stock nine years ago. Which of the following statements is correct with respect to the stock redemption? A.Amata has dividend income of $200,000B.Amata has a long-term capital gain of $140,000C.Amata's basis in her remaining 350 shares is $60,000D. Kingbird reduces its E & P by $200,000E. None

Kingbird Corporation ( E & P of $800,000) has 1,000 shares of stock outstanding. That stock isheld by Amata (550 shares) and Esteban (450 shares), who are unrelated individuals. Kingbird...
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