________ Bluebird Corporation has 100 shares of stock outstanding. It redeems 40 shares for $200,000 at a time when it has paid-in capital of $150,000 and E&P of $200,000. What would be the reduction to E&P as a result of the redemption?

a.            $20,000.

b.            $80,000.

c.            $100,000.

d.            $200,000.

Answer rating: 100% (QA)

Option b is correct 80000 Here percentage of Stock Redeemed 40... View the full answer