During an audit of Madison Companys December 31, 2017 records it was discovered that the company did not accurately accrue for $12,500 of depreciation expense. As well as the accrual for interest expense was missed in the amount $4,500. These errors occurred in 2016 and have a material impact on Madisons financial records. Madisons net income for the year was $123,000. The company is subject to a 35% tax rate. The company had a retained earnings balance of $557,500 on January 1, 2017, $60,050 dividends were paid.

Based on the information given above, what is the ending Retained Earning balance after prior period adjustments (net of taxes) are made?

a. $609,400

b. $557,500

c. none of these answers

d. $$669,450