Zap Corporation has 200 shares of outstanding stock, which are owned by three unrelated individuals as follows: Q owns 120 shares, R owns 60 shares, and S owns 20 shares.During the year, Zap redeemed 30 shares from Q for $36,000.Zap had E&P before the redemption of $35,000.The E&P of Zap will decrease by
A)$36,000
B)$5,250
C)$8,750
D)$35,000
E)None of the above

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The Answer of Zap Corporation has 200 shares of outstanding stock, which are owned by three unrelated individuals as follows: Q owns 120 shares, R owns 60 shares, and S owns 20 shares.During the year, Zap redeemed 30 shares from Q for $36,000.Zap had E&P before the redemption of $35,000.The E&P of Zap will decrease by
A)$36,000
B)$5,250
C)$8,750
D)$35,000
E)None of the above

Zap Corporation Has 200 Shares of Outstanding Stock, Which Are