Newland Company reported retained earnings at December 31, 2021, of $330,000. Newland had 200,000 shares of common stock outstanding at the beginning of 2022.

The following transactions occurred during 2022.

1. A cash dividend of $0.50 per share was declared and paid.

2. A 5% stock dividend was declared and distributed when the market price per share was $15 per share.

3. Net income was $285,000.

Instructions

Compute the ending balance in retained earnings at the end of 2022.