Nelson Company experienced the following transactions during Year 1, its first year in operation.

1. Acquired $8,600 cash by issuing common stock.
2. Provided $4,900 of services on account.
3. Paid $2,250 cash for operating expenses.
4. Collected $3,200 of cash from customers in partial settlement of its accounts receivable.
5. Paid a $230 cash dividend to stockholders.

What is the balance of the retained earnings that will be reported on the balance sheet as of December 31, Year 1?

Multiple Choice

$11,020.

$1,930.

$2,420.

$2,650.