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Canary Corporation has 1,000 shares of stock outst...

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Canary Corporation has 1,000 shares of stock outstanding. It redeems in a qualifying stock redemption 200 shares for $200,000 at a time when it has paid-in capital of $100,000 and E & P or $800,000. What would be the charge to Canary's E & P as a result of the redemption? a. $0 b. $20,000 c. $160,000 d. $200,000 e. None of the above

 

Paper#7536 | Written in 18-Jul-2015

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