Circle Corporation Has 1,000 Shares of Common Stock Outstanding

Multiple Choice

Circle Corporation has 1,000 shares of common stock outstanding. Circle redeems 450 shares owned by Dennis for $75,000 in complete redemption of Dennis's interest. The redemption qualifies as a sale. When the redemption is made, Circle Corporation has $150,000 of current and accumulated E&P and paid-in capital of $50,000. The distribution reduces paid-in capital by

A) $67,500.
B) $22,500.
C) $7,500.
D) $0.