Below is the equity section of the balance sheet of Water, Inc. as of December 31, 2019:

Common Stock, $1 Par$ $1,600,000.00

Additional Paid in Capital from Common Stock$ $2,360,000.00

Preferred Stock, $25 Par $569,100.00

Additional Paid in Capital from Preferred Stock $560,000.00

Treasury Stock $

Retained Earnings $1,950,000.00

If Retained Earnings on January 1 was $1,500,000 and the company paid $400,000 in dividends during the year, how much was net income for the year?

Select one:

a. $2,350,000

b. $850,000

c. $3,450,000

d. $450,000