On January 1, Year One, the Allenberry Company was started when owners contributed cash of $600,000 to start operations. During the first year, the company earned net income of $45,000 and declared $6,000 of dividends and paid $4,500 of dividends. During the second year, the company earned $76,000 of net income and declared $9,000 of dividends and paid $8,250 of dividends. What is retained earnings at the end of Year Two?

A. $106,000

B. $106,750

C. $107,500

D. $108,250

E. $121,000