Tantramar Corporation has the following shareholders equity on July 31, 2020:

Shareholders' equity

Share capital

$10 preferred shares, cumulative

10,000 shares authorized, 5,000 shares issued$2,000,000Common shares,

600,000 shares authorized, 10,000 shares issued300,000Total share capital2,300,000Retained earnings500,000Total shareholders' equity$2,800,000

Assume that on June 15, 2021, Tantramar paid the preferred dividend for the current year (there were no dividends in arrears) and paid a dividend of $2 to each common shareholder. The company earned $45,000 in profit during 2021. The July 31, 2021 financial statements will show an ending balance in retained earnings of

$475,000.

$545,000.

$500,000.

$430,000.