The JEM Company has been in operation for over 40 years and has 20,000 shares of $100 par-value common stock authorized, of which 12,000 shares have been issued. THe market value of the stock throughout 2014 until late Dcember, was $107.50 per share. On Sept. 1. 2014, the board of directors declared a 20% (small) stock dividend, distributable in October. The accounts showed the following balances immediately prior to the declaration of the dividend:

Common Stock = $1,200,000

Additional contributed capital = $90,000

Retained Earnings (includes net income earned through August 31) = $700,000

When distributed in October, the stock dividend included fractional share warramts for 600 shares. On December 15, 90% of the warrants were exercised; the remaining warrants were not exercised until 2015.

Given that the JEM Company reacquired 1,800 shares of its own stock for $106 per share on December 20, 2014, and that the company had no more net income for the period September through December, what is the unappropriated, retained earnings amount and how do you calculate it?