Spartan Corporation redeemed 25 percent of its shares for $2000 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 $2,000. Its current E&P is $12,000. Spartan made dividend distributions of $1000 on June 1 and $4,000 on August 31, Determine the beginning balance in Spartan's accumulated E&P at the beginning of the next year. See Revenue Rules 74.338 and 74,339 for help in making this calculation Accumulated E&P at the beginning of the next year