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The stockholders' equity of Crater Inc. at December 31, 2016, appears below: Common stock, $25 par value, 200,000 shares authorized,135,000 shares issued and outstanding $3,375,000

The stockholders' equity of Crater Inc. at December 31, 2016, appears below:

Common stock, $25 par value, 200,000 shares authorized,135,000

shares issued and outstanding

$3,375,000
Paid-in capital in excess of par value
$1,750,000
Retained Earnings $2,575,000

During 2017, the following transactions occurred:

May 10: Declared a 10% common stock dividend when market value was $50 per share
August 31: Issued the stock dividend declared on June 15.
December 10: Declared a cash dividend of $3.50 per share to be paid in January 2018.
December 31: Recognized net income of $1,630,500.

Compute the year-end balance of the retained earnings for 2017.

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