Brent, Matt, Chris, Brad, and Anwer are five unrelated shareholders who each owns 20 of the 100 outstanding shares of Aggie Corporation. On June 30 of this year, Aggie distributed $100,000 in cash to the shareholders. On September 30 of this year, Aggie redeemed all Anwer's shares for $80,000. Aggie had $45,000 of accumulated E&P at the beginning of the year and reported $120,000 of current E&P at year-end. What is Aggie's accumulated E&P at the beginning of next year? Consult Revenue Rule 74-338. (Hint: Determine the tax status of the redemption and then calculate the effect of the June distribution on current E&P.) Note: Negative amount should be indicated with a minus sign.

\begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{X Answer is complete but not entirely correct. } \\ \hline Current E\&P & $120,000 \\ \hline Less dividends paid & (100,000) \\ \hline Undistributed Current E\&P & 20,000 \\ \hline Prorated Undistributed Current E\&P at 9/30 & $ \\ \hline Add Accumulated E\&P at the beginning of year & 45,000 \\ \hline Total Accumulated E\&P at 9/30 & $ \\ \hline Reduce Accumulated E\&P by & (100,000) \\ \hline Add current E\&P in 4th quarter & (12,000) \\ \hline Accumulated E\&P at beginning of next year & $53,000 \\ \hline \end{tabular}