Mayfair Corporation has outstanding 88,000 shares of $1 par value common stock as well as 18,000 shares of 8.0%, $100 par value cumulative preferred stock. At the beginning of the year, the balance in retained earnings was $700,000, and one year's dividends were in arrears. Net income for the current year is $480,000. Compute the balance in retained earnings at the end of the year if Mayfair Corporation pays a dividend of $2.8 per share on its common stock this year. Multiple Choice $933,600. $390,400. $1,036,000. $645,600.