The Following Information Was Extracted from the Accounts of Boone

Multiple Choice

The following information was extracted from the accounts of Boone Corporation at December 31, 2007: $\begin{array}{lr}&CR(DR) \\\text { Total reported income since incorporation } & \$ 1,700,000 \\\text { Total cash dividends paid } & (800,000) \\\text { Unrealized holding loss } & (120,000) \\\text { Total stock dividends distributed } & (200,000) \\\text { Prior period adjustment, recorded January 1, } 2007 & 75,000\end{array}$ What should be the balance of retained earnings at December 31, 2007?

A) $655,000.
B) $700,000.
C) $580,000.
D) $775,000.