New Hampshire Services reported $2.3 million of retained earnings on its 2001 balance sheet. In 2002, the company lost money-its net income was -$500,000 (negative $500,000). Despite the loss, the company still paid a $1.00 per share dividend. The company's earnings per share for 2002 were -$2.50 (negative $2.50). What was the level of retained earnings on the company's 2002 balance sheet?*

A. $1.8 million

B. $2.6 million

C. $1.2 million

D. $1.6 million