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Caramel Corporation has 16,900 shares of stock outstanding. In a qualifying stock redemption, Caramel distributes $223,000 in exchange for 4,225 of its shares. At
Caramel Corporation has 16,900 shares of stock outstanding. In a qualifying stock redemption, Caramel distributes $223,000 in exchange for 4,225 of its shares. At the time of the redemption, Caramel has paid-in-capital of $1,115,000 and E & P of $669,000. Calculate the reduction to Caramel's E&P as a result of the distribution. The result of this redemption is a s charge to E & P
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Using Excel & Access for Accounting 2010
Authors: Glenn Owen
3rd edition
1111532672, 978-1111532673
