Lexington Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.) 1) Acquired $3.700 cash from issuing common stock 2) Borrowed $2,550 from a bank. 3) Earned $3.450 of revenues. 4) Incurred $2,470 in expenses. 5) Paid dividends of $470. Lexington Company engaged in the following transactions during Year 2: 1) Acquired an additional $850 cash from the issue of common stock, 2) Repaid $1,545 of its debt to the bank. 3) Earned revenues, $4,850 4) Incurred expenses of $2,890. 5) Paid dividends of $1,060. The amount of retained earnings on Lexington's balance sheet at the end of Year 1 was: Multiple Choice $3.450 $510 $980 O