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Crane Company reported retained earnings at December 31, 2019, of $316,500. Crane had 204,500 shares of common stock outstanding at the beginning of 2020. The following transactions occurred during 2020.
1. A cash dividend of $0.55 per share was declared and paid.2. A 10% stock dividend was declared and distributed when the market price per share was $17 per share.3. Net income was $287,000.
Problem 1: Compute the ending balance in retained earnings at the end of 2020.
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