A company's retained earnings balance at the end of the current year is $694,890. During the year, the company had net income of $138,950, and new capital spending of $166,850. The company uses a debt-to-equity ratio of 2.15 for the capital spending and strictly adheres to a residual dividend policy. What was the retained earnings balance at the beginning of the current year?

A) $641,992

B) $657,970

C) $674,018

D) $690,066

E) $706,114