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Caramel Corporation has 9,300 shares of stock outstanding. In a qualifying stock redemption, Caramel distributes $266,400 in exchange for 2,325 of its shares. At the time of the redemption, Caramel has paid-in-capital of $1,332,000 and E & P of $799,200. Calculate the reduction to Caramel's E & P as a result of the distribution.
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Caramel Corporation has 9,300 shares of stock outstanding. In a qualifying stock redemption, Caramel...
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