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

1. Acquired $8,800 cash by issuing common stock.
2. Provided $5,100 of services on account.
3. Paid $2,300 cash for operating expenses.
4. Collected $3,300 of cash from customers in partial settlement of its accounts receivable.
5. Paid a $240 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

• $2,560.

• $2,800.

• $2,040.

• $11,360.