Assume that a firm had shareholders equity on the balance sheet at a book value of $1,500 at the end of 2010. During 2011 the firm earns net income of $1,900, pays dividends to shareholders of $200, and issues new stock to raise $500 of capital. The book value of shareholders equity at the end of 2011 is: (use dirty surplus accounting)

$2,750

$250

$1,450

$3,700