If a firm began the year showing $12 million as retained earnings on its balance sheet, had $2 million of net income for the year, and paid $3 million in dividends, what would be the amount of its retained earnings at the end of the year?

a.

$ 7,000,000

b.

$11,000,000

c.

$ 6,000,000

d.

$ 8,000,000

e.

$ 9,000,000