David's Had a Retained Earnings Balance at the End of Last

David's had a retained earnings balance at the end of last year of $220,000. The firm had $63,000 in earnings this year and $120,000 in capital spending. David's maintains a debt-equity ratio of 2.2 and strictly adheres to a residual dividend policy. What is the retained earnings balance at the end of this year?

A) $223,000
B) $245,500
C) $248,636
D) $257,500
E) $274,545