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.

The result of this redemption is a $____________charge to E & P and a $__________reduction of Caramel's paid-in-capital