Grason Corporation is preparing a budgeted balance sheet for 2018. The retained earnings balance at December 31, 2017 was $538,500. The 2018 budgeted income statement shows expected net income of $114,500. The company expects to declare dividends during 2018 amounting to $42,500. The expected balance in retained earnings on the 2018 budgeted balance sheet is: $653,000. $610,500. $496,000. $695,500. $538,500