During 2018, your company paid dividends of $200,000, incurred interest expense of $900,000, and had net income of $1,400,000. Retained earnings on the Dec. 31, 2018 balance sheet were $6,500,000. What were retained earnings as of December 31, 2017?

A.

$5,300,000

B.

$5,400,000

C.

$6,200,000

D.

$6,300,000