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Find The E and P of SSS will decrease by

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Problem 1: SSS Corporation has 200 shares of outstanding stock, which are owned by three unrelated individuals a follows: A owns 120 shares, B owns 60 shares, and C owns 20 shares. During the year SSS redeemed 50 percent of A's shares for $60,000. SSS had E&P before the redemption of $100,000. The E&P of SSS will decrease by

a. $50,000.

b. $60,000.

c. $20,000.

d. $30,000.

e. none of the above.

Reference no: EM132827918

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