Al Arab Company SAOG has in issue 2,000,000 ordinary shares of OMR 2 fully paid. On 31st Dec 2019 management board has decided to pay a dividend of OMR 0.250 on each ordinary share which was readily approved by the shareholders. During the year the company earned a profit after tax of OMR 650,000. The opening balance of Retained earnings for the year 2019 was OMR 55,000. What will be the closing balance in the retained earnings?

a.

OMR 205,000

b.

OMR 500,000

c.

OMR 250,000

d.

OMR 150,000