Atlantic Corporation reported the following amounts at the end of the first year of operations: common stock $170,000; sales revenue $770,000; total assets $570,000; dividends declared $48,000; and total liabilities $330,000. What are Atlantics' retained earnings at the end of the year and what amount of expenses were incurred during the year?

a. Retained earnings are $70,000 and expenses incurred totaled $700,000.

b. Retained earnings are $240,000 and expenses incurred totaled $530,000.

c. Retained earnings are $70,000 and expenses incurred totaled $652,000.

d. Retained earnings are $240,000 and expenses incurred totaled $410,000.