Gibco Sports begins operations on January 1, 2020. During the year, the following transactions affect shareholders' equity.

1. Gibco authorizes the issuance of 10 million common shares and 200,000 preferred shares, which pay a dividend of $0.50 per share.
2. 100,000 common shares are issued for $22 a share.
3. 10,000 preferred shares are issued for $6 per share.
4. The full annual dividend on the preferred shares is declared and paid.
5. A 5% stock dividend is declared on the common shares. On the date of declaration, the shares' market price was $12.00.
6. The stock dividend is distributed.
7. 100,000 common shares are issued for $11 a share.
8. A 4:1 stock split is declared on common shares.
9. A dividend of $0.40 per share is declared on the common shares but is not yet paid.
10. The dividends on the common shares are paid.

What is the value of retained earnings at the end of the year if the company had net income of $2,000,000?