Dayton Corporation began the current year with a retained earnings balance of $18,168. During the year, the company corrected an error made in the prior year, which was a failure to record a depreciation expense of $2,628 on equipment. Also, during the current year, the company earned net income of $16,142 and declared cash dividends of $6,550. Compute the year-end retained earnings balance.

a.$27,760

b.$18,168

c.$43,488

d.$25,132