E-p as a result of the redemption, Accounting Basics

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E-p as a result of the redemption

Canary Corporation has 1,000 shares of stock outstanding. It redeems in a qualifying stock redemption 200 shares for $200,000 at a time when it has paid-in capital of $100,000 and E & P or $800,000. What would be the charge to Canary's E & P as a result of the redemption?

a. $0

b. $20,000

c. $160,000

d. $200,000

e. None of the above

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Accounting Basics: E-p as a result of the redemption

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Accounting Basics: E-p as a result of the redemption

Reference No:- TGS081478

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: E-p as a result of the redemption

Reference No:- TGS081478

Recent Questions Asked Accounting Basics

Q : Find out the consolidated balance for land

Q : Problem based on accounting records

Q : Gain recognized by demers company relating to the equipment

Q : Installent sale method

Q : E-p as a result of the redemption

Q : Single-rate cost-allocation method

Q : Calculating return on investment-residual income

Q : Tax return show gross income

Q : Separate component of stockholders equity

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