Grason Corporation is preparing a budgeted balance sheet for current year. The retained earnings balance at December 31 , of the previous year was $542,500. The current year budgeted income statement shows expected net income of $116,500. The company expects to declare dividends during the current year amounting to $44,500. The expected balance on December 31 of the current year in retained earnings on the budgeted balance sheet is: $614,500 $659,000 $703,500. $542.500. $498,000