$At$ a time when Blackbird Corporation had $E$ & $Pof$ $$700,000$ and $1,000$ shares $of$ stock outstanding, the corporation distributed $$300,000to$ redeem $400$ shares $of$ its stock. The transaction qualified $as$ a disproportionate redemption for the

shareholder. Blackbird's $E$ & $Pis$ reduced $by$ $$300,000as$ a result $of$ the distribution.

True

False