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Business, 25.10.2019 20:43 hannahv10

Caramel corporation has 5,000 shares of stock outstanding. in a qualifying stock redemption, caramel distributes $145,000 in exchange for 1,000 of its shares. at the time of the redemption, caramel has paid-in capital of $800,000 and e & p of $300,000. calculate the reduction to caramel’s e & p as a result of the distribution.

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