The stockholders equity accounts of Calinia , Inc., at January 1, 2020, are as follows

Preferred Stock, no par, 7,000 shares issued		$700,000
Common Stock, no par, 108,000 shares issued		540,000
Retained Earnings		495,000

During 2020, the company had the following transactions and events.

July

1

Declared a $0.50 cash dividend per share on common stock.

Aug.

1

Discovered a $71,000 overstatement of 2019 depreciation expense. (Ignore income taxes.)

Sept.

1

Paid the cash dividend declared on July 1.

Dec.		1		Declared a 10% stock dividend on common stock when the market price of the stock was $14 per share.
		15		Declared a $4 per share cash dividend on preferred stock, payable January 31, 2021.
		31		Determined that net income for the year was $400,000.

Determine the retained earnings balance at December 31, 2020 by preparing the retained earnings statement. There are no preferred dividends in arrears.