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John is a 25% shareholder in Profit Corporation. During the year, Profit redeems all of John's stock in exchange for Whiteacre with a value of

John is a 25% shareholder in Profit Corporation. During the year, Profit redeems all of John's stock in exchange for Whiteacre with a value of $ 200,000 and a basis of $ 100,000. The redemption qualifies as a section 302(b)(3) redemption. Assume the pre-redemption earnings and profits of Profit is $ 200,000. What is Profit Corporation's ending earnings and profits ?

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