A company's retained earnings on December 31, 2017 was $2,190,000 and its shareholders equity was $8,760,000. During 2018 the company reported the following: net income $225,000; a sale of treasury stock costing $75,000 for $79,750; a treasury stock purchase costing $126,000; a cash dividend declaration of $73,200; a 10,000 share "small" common stock ($10 par value) dividend was declared and distributed when the market value was $12.57 per share.

What is the owners equity balance on December 31, 2018?

a. $8,663,050

b. $8,815,550

c. $8,865,550

d. $8,934,000