Grason Corporation Is Preparing a Budgeted Balance Sheet for 2018

Multiple Choice

Grason Corporation is preparing a budgeted balance sheet for 2018. The retained earnings balance at December 31, 2017 was $533,500. The 2015 budgeted income statement shows expected net income of $112,000. The company expects to declare dividends during 2018 amounting to $40,000. The expected balance in retained earnings on the 2018 budgeted balance sheet is:

A) $533,500.
B) $605,500.
C) $645,500.
D) $685,500.
E) $493,500.