A services company reported $2.3 million of retained earnings on its 2010 balance sheet. In 2011, the company lost $500,000, that is its net income was -$500,000. Despite the loss, the company still paid a $1.00 per share dividend. The company's earnings per share for 2011 were -$2.50 (negative $2.50). What level of retained earnings is on the company's 2011 ending balance sheet?

A.$1.2 million

B.$1.6 million

C.$1.8 million

D.$2.6 million

E.$2.8 million