Conn Co. reported a retained earnings balance of $400,000 at December 31, 2014. In August 2016, Conn determined that insurance premiums of $60,000 the four-year period beginning January 1, 2014, had been paid and fully expensed in 2014. Conn has a 30% income tax rate. No differences exist between the accounting treatment and tax treatment of this item. What amount should Conn report as adjusted 1/1/15 retained earnings? $421,000 $368,500 $431,500 $355,000 $445,000