Dobby Corp. has 1,000 shares of stock outstanding, all common stock (equal voting rights). In...
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Dobby Corp. has 1,000 shares of stock outstanding, all common stock (equal voting rights). In a qualifying redemption, Dobby Corp. redeems 200 of its shares from Snape in exchange for $50,000. Snapes basis in the redeemed shares was $30,000. At the time of the redemption, Dobby Corp. has E&P of $100,000.
What is Dobby Corp.'s earnings and profits after the redemption?
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