Accumulated EAP at the beginning of the next year

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
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Spartan Corporation redeemed 25 percent of its shares for $2.700 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 $2,700. Its current E&P is $19,900. Spartan made
dividend distributions of $2,400 on June 1 and $6,600 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. (Round your intermediate
calculations to the nearest whole dollar amount.)
Accumulated E&P at the beginning of the next year
Transcribed Image Text:Spartan Corporation redeemed 25 percent of its shares for $2.700 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 $2,700. Its current E&P is $19,900. Spartan made dividend distributions of $2,400 on June 1 and $6,600 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. (Round your intermediate calculations to the nearest whole dollar amount.) Accumulated E&P at the beginning of the next year
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