Spartan Corporation redeemed 25 percent of its shares for $4,800 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 $4,800. Its current E&P is $14,100. Spartan made dividend distributions of $1,500 on June 1 and $4,500 on August 31. Determine the beginning balance in Spartan’s accumulated E&P at the beginning of the next year. See Rev. Ruls. 74-338 and 74-339 for help in making this calculation. (Round your intermediate calculations to the nearest whole dollar amount.)