Atlantic Corporation reported the following amounts at the end of the first year of operations:

Common stock	$	240,000
Sales revenue	$	910,000
Total assets	$	710,000
Dividends declared	$	62,000
Total liabilities	$	430,000

What are the retained earnings of Atlantic at the end of the year, and what amount of expenses were incurred during the year?

Multiple Choice

• Retained earnings are $280,000 and expenses incurred totaled $520,000.

• Retained earnings are $40,000 and expenses incurred totaled $808,000

• Retained earnings are $40,000 and expenses incurred totaled $870,000.

• Retained earnings are $280,000 and expenses incurred totaled $630,000