Davis Corporation began the year with a 1,250,000 credit balance in Retained Earnings. During the year, the corporation earned 521,000 in net income and paid 112,000 in dividends. What is ending Retained Earnings?

Using your Ending Retained Earnings figure from the previous question, compute Davis Corporation's total Owners' Equity assuming the corporation issued 200,000 shares of $25.00 par value stock for $27.50. There was no purchase of treasury stock or other adjustments.