Hawkeye Company reports current E&P of $415,000 this year and accumulated E&P at the beginning of the year of $302,500. Hawkeye distributed $420,000 to its sole shareholder, Ray Kinsella, on December 31 of this year. Ray's tax basis in his Hawkeye stock is $92,500
What is Hawkeye's balance in accumulated E&P as of January 1 of next year?