The Following Information Has Been Obtained from the Records of Smyth

Essay

The following information has been obtained from the records of Smyth Corporation at December 31, 2006: $$\begin{array} { | l | l | } \hline \text { Total reported income since incorporation } & \$ 1,100,000 \\\hline \text { Total cash dividends paid } & 700,000 \\\hline \text { Cumulative effect of changes in accounting polic ies, (in prior y ears a debit) } & 150,000 \\\hline \text { Total stock dividends distributed } & 150,000 \\\hline \text { Correction of a prior period error, recorded } & 75,000 \\\hline\end{array}$$ January 15, 2001 (a credit)
Calculate the balance of the Retained Earnings at December 31, 2006.