Alexander Company Reported the Ending Balance of Retained Earnings as $400,000

Alexander Company reported the ending balance of Retained earnings as $400,000 on December 31, 2013. During the first month of 2014, they discovered an error in the ledger which had the effect of overstating net income in 2013 by $45,000. At the end of 2014, they included this item as a prior period adjustment. Year 2014 results included $52,000 of net income and $15,000 of dividends paid. What amount would be shown as the ending balance of Retained earnings on the December 31, 2014 financial statements?

A) $430,000
B) $347,000
C) $437,000
D) $392,000