Question 23

The following shareholders' equity accounts of ABC Corporation on January 1, 2020 were as follows: Preferred Shares ($9, cumulative, 3,125 shares authorized, 1,639 shares issued) $425,602

Common Shares (406,195 shares authorized, 119,103 shares issued) $1.105.004

Retained Earnings $431,399 The company was unable to pay the dividends on preferred shares for 2019.

During 2020, the corporation had these transactions and events pertaining to its shareholders' equity: February 1: Issued 5,004 common shares for $18.836

September 1: Declared and paid the dividend in arrears on preferred shares.

October 1: Declared a cash dividend (for the current year) on preferred shares, payable November 1.

December 1: Declared a $0.38 per share cash dividend to common shareholders of record on December 15, payable December 31, 2020.

December 1: Determined that net income for the year was 1.838.873. At December 31, the market price of the common shares was $3 per share.

What is the balance in the retained earnings account at December 31. 2020?