Mayfair Corporation has outstanding 110,000 shares of $1 par value common stock as well as 29,000 shares of 13.5%, $100 par value cumulative preferred stock. At the beginning of the year, the balance in retained earnings was $975,000, and one year's dividends were in arrears. Net income for the current year is $590,000. Compute the balance in retained earnings at the end of the year if Mayfair Corporation pays a dividend of $3.9 per share on its common stock this year.

$353,000.

$820,500.

$1,136,000.

$1,173,500.

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