On 1 January, the Equity of a Business Was

On 1 January, the equity of a business was $ 25,000. On 31 December of that year it had increased to $ 32,000. During the year the owner both introduced additional equity of $10,000 and took out $7,000 in dividends. Calculate the retained profit for the year.

A) $ 4,000
B) $ 7,000
C) $ 10,000
D) $ 12,000