Sanguillen Corp. showed retained earnings of $500,000 on its balance sheet for 2007. In 2008, the company's earnings per share (EPS) were $1.50 and its dividends paid per share (DPS) were $0.50. The company has 200,000 shares of stock outstanding. What will be the level of retained earnings on the company's 2008 balance sheet?

	(in 000)
Balance of Retained earnings, 12/31/07	500
Net Income, 2008	?
Dividends paid	?
Balance of retained earnings, 12/31/08	?

Select one:

a. $500,000

b. $800,000

c. $900,000

d. $600,000

e. $700,000