S$.$B$.$ Industries began the year with $400,000$ shares of $$1$ par common stock and retained earnings of $$2,000,000.$ Early in the year, S$.$B$.$ declared and distributed a $40\%$ stock dividend when shares were trading at $$6$ per share. Near the end of the year, S$.$B$.$ declared a cash dividend of $$0\mathrm{.}50$ per share, payable in the following year.

S$.$B$.\text{'}$s end of the year retained earnings balance was:

Select one:

a$.$ $$760,000$

b$.$ None of the Retained Earnings amounts are correct.

c$.$ $$1,720,000$

d$.$ $$1,560,000$

e$.$ $$1,640,000$