The Income Statement for Hudson Company Reported Net Income of $345,000

Essay

The income statement for Hudson Company reported net income of $345,000 for the year ended December 31 before considering the following:
$\bullet$ During the year the company purchased trading securities.
$\bullet$ At year end, the fair value of the investment portfolio was $23,000 less than cost.
$\bullet$ The balance of Retained Earnings was $823,000 on January 1.
$\bullet$ Hudson Company paid $43,000 in cash dividends during the year.
Calculate the balance of Retained Earnings on December 31.