Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.) 1) Acquired $1,500 cash from the issue of common stock. 2) Borrowed $970 from a bank. 3) Earned $1,150 of revenues cash. 4) Paid expenses of $360. 5) Paid a $160 dividend. During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash transactions.) 1) Issued an additional $875 of common stock. 2) Repaid $605 of its debt to the bank. 3) Earned revenues of $1,300 cash. 4) Incurred expenses of $580. 5) Paid dividends of $210. What is the amount of retained earnings that will be reported on Packard's Year 2 balance sheet? Multiple Choice $845 $1,350 O O $1,460 O $1,140