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Business, 11.02.2020 04:20 lizbethreyes5725

Caramel Corporation has 5,000 shares stock outstanding. In a qualifying stock redemption, Caramel distributes $145,000 in exhange 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 results of this redemption is a $ charge to E&P and a $ reducation of Caramel's paid-in-capital account.

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Caramel Corporation has 5,000 shares stock outstanding. In a qualifying stock redemption, Caramel di...

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