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Required information

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Sanchez Company engaged in the following transactions during Year $1$:

Started the business by issuing $$11,100$ of common stock for cash.

The company paid cash to purchase $$6,900$ of inventory.

The company sold inventory that cost $$4,300$ for $$8,400$ cash.

Operating expenses incurred and paid during the year, $$3,800.$

Sanchez Company engaged in the following transactions during Year $2$:

The company paid cash to purchase $$9,400$ of inventory.

The company sold inventory that cost $$8,500$ for $$15,000$ cash,

Operating expenses incurred and paid during the year, $$4,800.$

Note: Sanchez uses the perpetual inventory system.

What is the amount of retained earnings that will be shown on the balance sheet at December $31,$ Year $2?$

Multiple Choice

$$1,700$

$$2,000$

$$10,100$

$$6,800$