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Problem 7-64(LO 7-4)(Algo) Spartan Corporation redeemed 25 percent of its shares for $3,000...

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Accounting

Problem 7-64(LO 7-4)(Algo)
Spartan Corporation redeemed 25 percent of its shares for $3,000 on July 1 of this year, in a transaction that qualified as an exchange
under $302(a). Spartan reported accumulated E&P at the beginning of the year of $3,000 and current E&P at year end was $17,900.
Spartan made dividend distributions of $2,700 on June 1 and $5,700 on August 31. Determine the beginning balance in Spartan's
accumulated E&P at the beginning of the next year. See Revenue Rule 74-338 and Revenue Rule 74-339 for help in making this
calculation.
Note: Round your intermediate calculations to the nearest whole dollar amount.
Accumulated E&P at the beginning of the next year
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