Question: Example 4 - 8 : Kay Corporation has 1 0 0 shares outstanding, 4 0 of which are owned by Trey. Kay has an E&P

Example 4-8: Kay Corporation has 100 shares outstanding, 40 of which are owned by Trey. Kay has an E&P balance of $100,000. During the year, Kay redeemed all of Treys shares for $50,000 in a redemption that qualifies for sale treatment. What is the adjustment to Kay Corporations E&P? Assume Kay redeemed Treys shares for $25,000. What is the adjustment to Kay Corporations E&P?

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