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Determine the beginning balance in Spartan accumulated

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Question - Spartan Corporation redeemed 25 percent of its shares for $3,300 on July 1 of this year, in a transaction that qualified as an exchange under §302(a). Spartan's accumulated E&P at the beginning of the year was $3,300. Its current E&P is $15,600. Spartan made dividend distributions of $1,500 on June 1 and $4,200 on August 31. Determine the beginning balance in Spartan's accumulated E&P at the beginning of the next year.

Reference no: EM132654193

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