LeonardCorporation reports the following information:

Correction of overstatement of depreciation expense in prior years, net of tax$215,000

Dividendsdeclared160,000

Netincome500,000

Retained earnings, 1/1/12,asreported2,000,000

Leonard should reportretainedearnings, 12/31/12,at

A)$1,785,000.

B)$2,125,000.

C)$2,340,000.

D)$2,555,000.