Malvin Developments Inc. ("Malvin") is authorized to issue 400,000 common shares. As of January 1, 2020, the company had 150,000 common shares issued and outstanding. The company had the following shareholders' equity balances as of January 1, 2020: Common shares Retained earnings Accumulated other comprehensive income $1,725,000 $330,000 $57,000 The following events occurred during the December 31, 2020 fiscal year end: On March 13, 2020, the company bought back and immediately cancelled 25,000 shares for $10 each from Mrs. Aguada who had originally purchased the shares for $9 each. On October 20, 2020, Malvin issued 100,000 common shares for $15 each. In December 2020, the company declared and paid a cash dividend of $0.50 per share. Reported net income of $77,000. Reported other comprehensive income of $4,000. At the end of the year, the common shares were trading for $20 per share. Required: a) What amount should Malvin report as retained earnings as of December 31, 2020? b) Prepare the shareholders' equity section for Malvin as of December 31, 2020. c) Explain the consequences of Malvin completing a 4:1 stock split as of December 31, 2020.