The Answer is not $740.

Lexington Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions) Acquired $3.300 cash from issuing common stock 2) Borrowed $2,250 from a bank 3) Earned $3,150 of revenues 4) Incurred $2,410 in expenses 5) Pald dividends of $410. Lexington Company engaged in the following transactions during Year 2 1) Acquired an additional $550 cash from the issue of common stock 2) Repaid $1335 of its debt to the bank 3) Earned revenues, 54,550 4) incurred expenses of $2.770 5) Pald dividends of $700 The amount of retained earnings on Lexington's balance sheet at the end of Year 1 was. Multiple Choice 5740 O $200 $350