On Builtrite's current balance sheet for this year, retained earnings equaled $$800,000.$ This year Builtrite's income statement showed net profits after tax of $$550,000$ before paying out $$150,000$ in dividends to its common stockholders and $$100,000$ to its preferred stockholders.

What were Builtrite's retained earnings for the previous year?

$$800,000$

$$700,000$

$$500,000$

$$400,000$