1. The balance in retained earnings on January 1, 2020, for ABC Corporation was $400,000. During the year, the corporation paid cash dividends of $50,000 and distributed a stock dividend of $10,000. In addition, the company determined that it had overstated its repairs expense in prior years by $35,000. Net income for 2020 was $72,000.

Determine the retained earnings balance for 2020 as shown in class.

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