ClearSky Ltd. began the year with retained earnings of $500,000. During the year, the company earned a net income of $200,000 and declared dividends of $50,000. The company also reported an adjustment of $20,000 due to a prior period error which overstated the income of a previous year. How much is ClearSky Ltd.s retained earnings at the end of the year?

• $700,000
• $630,000
• $650,000
• $680,000