Elston Company Compiled the Following Financial Information as of December

Multiple Choice

Elston Company compiled the following financial information as of December 31, 2014: $$\begin{array} { l r } \text { Service revenue } & \$ 700,000 \\\text { Common stock } & 150,000 \\\text { Equipment } & 200,000 \\\text { Operating expenses } & 625,000 \\\text { Cash } & 175,000 \\\text { Dividends } & 50,000 \\\text { Supplies } & 25,000 \\\text { Accounts payable } & 100,000 \\\text { Accounts receivable } & 75,000 \\\text { Retained earnings, } 1 / 1 / 14375,000\end{array}$$ Elston's retained earnings on December 31, 2014 are

A) $375,000.
B) $450,000.
C) $400,000.
D) $ 25,000.