Problem 6 XYZ corporation has 4800 shares of stock outstanding. Ia a qualifying stock redemption, XYZ...
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Problem 6 XYZ corporation has 4800 shares of stock outstanding. Ia a qualifying stock redemption, XYZ distributes $150,000 in exchange for 1200 shares. At the time of redemtion, XYZ uas paid-in capital of $900,000 and E & P of $400,000, Calculate the reduction to XYZ's E & P as a result of distribution. Problem 6 XYZ corporation has 4800 shares of stock outstanding. Ia a qualifying stock redemption, XYZ distributes $150,000 in exchange for 1200 shares. At the time of redemtion, XYZ uas paid-in capital of $900,000 and E & P of $400,000, Calculate the reduction to XYZ's E & P as a result of distribution.
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i The reduction of XYZs EP as a result of distribution 40000048001200 100000 ii Hence100000 is ... View the full answer
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Investment Analysis and Portfolio Management
ISBN: 978-0538482387
10th Edition
Authors: Frank K. Reilly, Keith C. Brown
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