Leonard Corporation reports the following information:

Correction of understatement of depreciation expense in prior years, net of tax $ 175,000

Dividends declared 160,000

Net income 500,000

Retained earnings, 1/1/15, as reported 2,000,000

Leonard should report retained earnings, 12/31/15, at

	a.	$1,785,000.
	b.	$2,165,000.
	c.	$2,515,000.
	d.	None of the above