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This year Bobcat Company reports current E&P of negative $300,000 that accrued evenly throughout the year....

This year Bobcat Company reports current E&P of negative $300,000 that accrued evenly throughout the year. At the beginning of the year, Bobcat’s accumulated E&P was $200,000. Bobcat distributed $200,000 to its sole shareholder, Melanie Rushmore, on June 30 of this year. Melanie’s tax basis in her Bobcat stock was $75,000. What is Bobcat’s balance in accumulated E&P on the first day of next year?

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