Flintstone company is owned equally by fred stone and his sister wilma, each of whom hold 2,500 shares in the company. wilma wants to reduce her ownership in the company, and it was decided that the company will redeem 560 of her shares for $26,000 per share on december 31 of this year. wilma’s income tax basis in each share is $8,750. flintstone has current e& p of $10,420,000 and accumulated e& p of $50,690,000.what is the amount and character recognized by wilma as results of the stock redemption, assuming only the "sustainabiity disproportionate with respect to shareholder" test is applied?

Listed below are several transactions that took place during the first two years of operations for the law firm of pete, pete, and roy.year 1 year 2amounts billed to clients for services rendered $ 170,000 $ 220,000 cash collected from clients 160,000 190,000 cash disbursements salaries paid to employees for services rendered during the year 90,000 100,000 utilities 30,000 40,000 purchase of insurance policy 60,000 0 in addition, you learn that the company incurred utility costs of $35,000 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period.required: 1. & 3. calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the company would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model.2. prepare an income statement for each year according to the accrual accounting model.