Red shoes, Inc. has total assets of $1,550,000, total debt of $650,000, and 180,000 shares of common stock. The common shares had a book value of $758,000 as of the beginning of the fiscal year. During the year the company produced taxable income of $1,200,000. The company also paid quarterly dividends of $.375 per share, and all four payments were made. The tax rate is 21%. Calculate the balance of the retained earnings account at the end of the fiscal year.