At the End of Year 2, Retained Earnings for the Baker

Multiple Choice

At the end of Year 2, retained earnings for the Baker Company was $2,350. Revenue earned by the company in Year 2 was $2,600, expenses paid during the period were $1,400, and dividends paid during the period were $800. Based on this information alone, what was the amount of retained earnings at the beginning of Year 2?

A) $1,150
B) $2,750
C) $1,950
D) $5,200