Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are cash transactions.) 1. Acquired $3,200 cash from issuing common stock. 2. Borrowed $2,300 from a bank. 3. Earned $3,200 of revenues. 4. Incurred $2,420 in expenses. 5. Paid dividends of $420. Lexington Company engaged in the following transactions during Year 2: (Assume all transactions are cash transactions.) 1. Acquired an additional $600 cash from the issue of common stock. 2. Repaid $1,370 of its debt to the bank. 3. Earned revenues, $4,600. 4. Incurred expenses of $2,790. 5. Paid dividends of $760. What was the amount of retained earnings that will be reported on Lexington's balance sheet at the end of Year 1