Spartan Corporation redeemed 25 percent of its shares for $4,500 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 $4,500. Its current E&P is $21,300. Spartan made dividend distributions of $1,200 on June 1 and $4,800 on August 31. Determine the beginning balance in Spartan's accumulated E&P at the beginning of the next year. See Revenue Rule 74-338 and Revenue Rule 74-339 for help in making this calculation. Note: Round your intermediate calculations to the nearest whole dollar amount.

Accumulated E&P at the beginning of the next year?