Canary corporation has 1000 shares of stock outstanding. it, Ask an Expert

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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, Accounting

Category:- Accounting Basics
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