Henson Company began the year with retained earnings of $380,000. During the year, the company issued stock for $800,000, purchased a building for $650,000, recorded revenues of $500,000, disclosed expenses of $380,000, and paid dividends of $40,000. What was Hensons retained earnings at the end of the year?

a. $540,000

b. $460,000

c. $840,000

d. $500,000

Please explain