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Problem $07-36($LO $07-2)($Static$)$

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Hawkeye Company reports current E&P of $$300,000$ this year and accumulated E&P at the beginning of the year of $$200,000.$ Hawkeye distributed $$400,000$ to its sole shareholder, Ray, on December $31$ of this year. Ray's tax basis in his Hawkeye stock before the distribution is $$75,000.$

Problem $07-36$ Part c $($Static$)$

c$.$ What is Hawkeye's balance in accumulated E&P as of January $1$ of next year?