Grason Corporation is preparing a budgeted balance sheet for 2015. The retained earnings balance at December 31, 2014 was $533,500. The 2015 budgeted income statement shows expected net income of $112,000. The company expects to declare dividends during 2015 amounting to $40,000. The expected balance in retained earnings on the 2015 budgeted balance sheet is: $533,500. $685,500. $493,500. $605,500. $645,500.