C Co. reported a retained earnings balance of $260,000 at December 31, 2017. In September 2018, C determined that insurance premiums of $45,000 for the three-year period beginning January 1, 2017, had been paid and fully expensed in 2017. C has a 35% income tax rate. What amount should C report as adjusted beginning retained earnings in its 2018 statement of retained earnings?

Multiple Choice

$275,000.

$289,250.

$279,500.

$290,000.