Canary Corporation Has 5,000 Shares of Stock Outstanding

question 137

Multiple Choice

Canary Corporation has 5,000 shares of stock outstanding. It redeems in a qualifying stock redemption 1,200 shares for $475,000 at a time when it has paid-in capital of $300,000 and E & P of $1.5 million. What would be the charge to Canary's E & P as a result of the redemption?

• A) $72,000
• B) $300,000
• C) $432,000
• D) $475,000
• E) None of the above

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Definitions:

Growth Cones

Dynamic, actin-supported extensions of a developing or regenerating neurite seeking synaptic partners by sensing their environment.

Neurotrophic Factors

Proteins that support the growth, survival, and differentiation of neurons and synaptic connections in the nervous system.

Adhesion Molecules

Proteins located on the cell surface that are involved in the binding with other cells or with the extracellular matrix.

Speech Sounds

Speech sounds are the auditory signals or phonemes that are produced by the human vocal apparatus to form the building blocks of spoken language.