Canary Corporation has 5,000 shares of stock outstanding. It redeems in a qualifying stock redemption 1,200 shares for $475,000 at a time when it has paid-in capital of $300,000 and E & P of $1.5 million. What would be the charge to Canarys E & P as a result of the redemption? Select one:

a. $360,000.

b. $ 72,000.

c. $300,000.

d. $475,000.