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Caramel Corporation has 8,900 shares of stock outstanding. In a qualifying stock redemption, Caramel distributes $252,400 in exchange for 2,225 of its shares. At

Caramel Corporation has 8,900 shares of stock outstanding. In a qualifying stock redemption, Caramel distributes $252,400 in exchange for 2,225 of its shares. At the time of the redemption, Caramel has paid-in-capital of $1,262,000 and E & P of $757,200. Calculate the reduction to Caramel's E & P as a result of the distribution. The result of this redemption is a $ charge to E & P

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