The Income Statement for the Year 2018 of Fugazi Co

The income statement for the year 2018 of Fugazi Co. contains the following information: At January 1, 2018, Fugazi reported retained earnings of $50,000. Dividends for the year totalled $10,000. At December 31, 2018, the company will report retained earnings of

A) $17,500.
B) $32,500.
C) $40,000.
D) $42,500.