On January 1, 2020, Guided Light Corporation's Retained Earnings Account

On January 1, 2020, Guided Light Corporation's Retained Earnings account had a balance of $275,000. During 2020, cash dividends of $50,000 were declared and stock dividends with a
Market value of $40,000 were declared. Net income for 2020 amounted to $120,000. What is the balance in Retained Earnings appearing on the statement of shareholders' equity on December 31,
2020?

A) $305,000
B) $345,000
C) $185,000
D) $395,000