At the beginning of the current year, Elite Corporation had 130,000 shares of $1 par common stock outstanding and had retained earnings of $4,100,000. During the year, the company earned $1,605,000, declared a 10% stock dividend when the price of stock was $25 per share, and paid a year-end cash dividend of $4 per share. (The cash dividend was paid after the stock dividend had been distributed.) What was Elite Corporation's retained earnings at the end of the year?

• $5,380,000.
• $4,808,000.
• $3,203,000.
• $4,840,500.