Question: At the beginning of 2020, Pluto Company had retained earnings of $800,000. During the year Pluto reported net income of $200,000, declared a cash

At the beginning of 2020, Pluto Company had retained earnings of $800,000.

At the beginning of 2020, Pluto Company had retained earnings of $800,000. During the year Pluto reported net income of $200,000, declared a cash dividend of $120,000, and declared and issued a small stock dividend of 6,000 shares ($10 par value) when the fair value of the stock was $20 per share. The retained earnings balance at the end of 2020 is

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