Spartan Corporation uses a calendar year and redeemed 25 percent of its shares for $4,500 on July 1 of this year, in a transaction that qualified as an exchange under 302(a). Spartans 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 Spartans accumulated E&P at the beginning of the next year. See Rev. Rul. 74-338, 1974-2 C.B. 101 and Rev. Rul. 74-339, 1974-2 C.B. 103 for help in making this calculation. (Round your intermediate calculations to the nearest whole dollar amount.)

Beginning balance in a accumulated E & P--------