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EG Corporation redeemed 200 shares of stock from one of its shareholders in exchange for $205,000. The redemption represented 20% of the corporation's outstanding stock.
EG Corporation redeemed 200 shares of stock from one of its shareholders in exchange for $205,000. The redemption represented 20% of the corporation's outstanding stock. The redemption was treated as an exchange by the shareholder. EG's total E\&P at the time of the distribution was $550,000. By what amount does EG reduce its total E\&P as a result of the redemption
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