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McGraw-Hill's Taxation of Business Entities 3rd Edition by Connie Weaver, Brian Spilker, Edmund Outslay, John Robinson, Ronald Worsham, Benjamin Ayers, John Barrick
Edition 3ISBN: 9780077924522McGraw-Hill's Taxation of Business Entities 3rd Edition by Connie Weaver, Brian Spilker, Edmund Outslay, John Robinson, Ronald Worsham, Benjamin Ayers, John Barrick
Edition 3ISBN: 9780077924522 Exercise 59
EG Corporation redeemed 200 shares of stock from one of its shareholders in exchange for $200,000. The redemption represented 20 percent of the corporation's outstanding stock. The redemption was treated as an exchange by the shareholder. By what amount does EG reduce its total E P as a result of the redemption under the following E P assumptions
a. EG's total E P at the time of the distribution was $2,000,000.
b. EG's total E P at the time of the distribution was $500,000.
a. EG's total E P at the time of the distribution was $2,000,000.
b. EG's total E P at the time of the distribution was $500,000.
Explanation
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Verified
Dividend means distribution of property ...
McGraw-Hill's Taxation of Business Entities 3rd Edition by Connie Weaver, Brian Spilker, Edmund Outslay, John Robinson, Ronald Worsham, Benjamin Ayers, John Barrick
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