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 Paid-in capital in excess of par value Retained earnings 3,375,000 1,750,000 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