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

operations: common stock $$200,000$; sales revenue $$800,000$; total assets $$600,000$;

dividends declared $$40,000$; and total liabilities $$320,000.$ 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 $$80,000$ and expenses incurred totaled $$680,000.$

B$.$ Retained earnings are $$80,000$ and expenses incurred totaled $$720,000.$

C$.$ Retained earnings are $$280,000$ and expenses incurred totaled $$480,000.$

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