Problem $18-64($LO $18-4)($Algo$)$

$5\mathrm{.}26$

points

Spartan Corporation redeemed $25$ percent of its shares for $$4,200$ on July $1$ of this year, in a transaction that qualified as an exchange under IRC $$302($a$).$ Spartan's accumulated E&P at the beginning of the year was $$4,200.$ Its current E&P is $$20,300.$ Spartan made dividend distributions of $$3,000$ on June $1$ and $$4,800$ 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$8$P at the beginning of the next year

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