Assume that a company had a net income equal to $500,000, and paid out $200,000 in dividends. The balance in the retained earnings account at the beginning of the year was $800,000. What is the balance in the retained earnings account at the end of the year?

Select one: a. $1,100,000 b. $700,000 c. $1,500,000 d. $1,300,000