62. Brent, Matt, Chris, Brad, and Anwer are five unrelated shareholders who each own 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 of 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 Rev. Rul. 74-338, 1974-2 C.B. 101. (Hint: Determine the tax status of the redemption and then calculate the effect of the June distribution on current E&P.)