Perez Corporation Has 100,000 Shares of $1 Par Value Common

Perez Corporation has 100,000 shares of $1 par value common stock and 20,000 shares of 8% cumulative preferred stock, $100 par value, outstanding. The balance in Retained Earnings at the beginning of the year was $1,600,000, and one year's dividends were in arrears. Net income for the current year was $870,000. If Perez Corporation paid a dividend of $2 per share on its common stock, what is the balance in Retained Earnings at the end of the year?

A) $2,150,000.
B) $2,270,000.
C) $2,110,000.
D) $1,950,000.