RVR Enterprises shows net income of $100,000 for 2011 and retained earnings of $500,000 on its December 31, 2011, balance sheet. During the year RVR declared and paid $60,000 in dividends. What was RVR’s retained earnings balance at December 31, 2010?
a. $540,000
b. $460,000
c. $440,000
d. $400,000