. Sheffield Stamp Company records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. Sheffields past experience indicates that only 80% of the stamps sold to licensees will be redeemed. Sheffields liability for stamp redemptions was $12,693,900 at December 31, 2016. Additional information for 2017 is as follows.

Stamp service revenue from stamps sold to licensees		$8,614,200
Cost of redemptions (stamps sold prior to 1/1/17)		5,494,900

If all the stamps sold in 2017 were presented for redemption in 2018, the redemption cost would be $5,173,300. What amount should Sheffield report as a liability for stamp redemptions at December 31, 2017?