Superpants, Inc. redeemed 30 percent of its stock, 300 shares of $1 par value common stock for $7,000, meeting the requi

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Superpants Inc Redeemed 30 Percent Of Its Stock 300 Shares Of 1 Par Value Common Stock For 7 000 Meeting The Requi 1 (31.11 KiB) Viewed 9 times

Superpants, Inc. redeemed 30 percent of its stock, 300 shares of $1 par value common stock for $7,000, meeting the requirements for sale or exchange treatment. As a result of the $7,000 cash. distribution: O E&P is reduced by $7,000, less $300 of par value, the latter reducing the capital stock account. O The capital stock account is reduced by $300 and the paid-in capital account by 30 percent of its balance, while the remainder reduces E&P. O E&P is reduced by $7,000, the amount of the distribution. O The capital accounts are reduced by $7,000, less 30 percent of the E&P account.