A companys retained earnings on December 31, 2018 was $2,190,000 and its shareholders equity was $8,760,000. During 2019 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 $125,700
• 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 $12.75 per share.

What is the retained earnings balance on December 31, 2019?

Group of answer choices

$1,994,050

$2,219,050

$2,216,100

$2,246,550