Moringa Products Corporation had common stock of $820,000 and retained earnings of $1,250,000 on January 1. During the year, $75,000 of common stock was issued. Dividends of $48,000 were paid. For the year ended December 31, Moringa reported a net income of $287,500. What is the retained earnings balance on December 31?

a.$1,489,500

b.$2,480,500

c.$2,405,500

d.$335,500