Q$3.(4$ Marks$)$

Tomato$$s retained earnings balance on January $1,2020,$ was $$1,000,000.$ The following additional information was extracted from the accounts of Tomato Corporation at December $31,2020$:

Total reported income since incorporation $...............$ CR $$1,540,000$

Total cash dividends paid $...........................................(550,000)$

Cumulative effect of changes in accounting principle

$(154,000)$

Total stock dividends distributed $.............................(330,000)$

Correction of an error, recorded January $1,2020......84,700$

Required:

What should be the balance of retained earnings at December $31,2020?$ You must show your work. $(4$ marks$)$

$($Accounts $|$ Amount$)$