Question - Spartan Corporation redeemed 25 percent of its shares for $3,300 on July 1 of this year, in a transaction that qualified as an exchange under §302(a). Spartan's accumulated E&P at the beginning of the year was $3,300. Its current E&P is $16,400. Spartan made dividend distributions of $1,200 on June 1 and $5,700 on August 31. Determine the beginning balance in Spartan's accumulated E&P at the beginning of the next year.