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

Preferred Stock, no par, 4,800 shares issued		$480,000
Common Stock, no par, 144,000 shares issued		720,000
Retained Earnings		525,000

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 $61,000 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 $12 per share.
		15		Declared a $8 per share cash dividend on preferred stock, payable January 31, 2021.
		31		Determined that net income for the year was $410,000.

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