The bookkeeper for the Maze Company prepared the following income statement and statement of retained earnings for the year ended December 31, 2019:

Maze Company

December 31, 2019

Income Statement

Sales (net)

1,568,000

Less: Selling expenses

(156,800)

Net sales

1,411,200

Add: Interest revenue

18,400

Add: Gain on sale of equipment

25,600

Gross sales revenue

1,455,200

Less: Costs of operations:

Cost of goods sold

960,800

Correction of overstatement in last year's income due to error (net of P13,200 income tax credit)

30,800

Dividend costs (P4 per share for 8,000 ordinary shares)

32,000

Loss due to earthquake

33,600

(1,057,200)

Taxable revenues

398,000

Less: Income tax on income from continuing operations

(99,840)

Net income

298,160

Miscellaneous deductions

Loss from operations of discontinued Segment (net of P7,200 income tax credit)

16,800

Administrative expenses

134,400

(151,200)

Net revenues

146,960

Maze Company

Retained Revenue Statement

For the Year Ended December 31, 2019

Retained earnings, beginning

474,400

Add: Gain on sale of Segment (net of P10,800 income taxes)

25,200

Recalculated retained earnings

499,600

Add: Net revenues

146,960

646,560

Less: Interest expense

(27,200)

Retained earnings, ending

619,360

The balance of retained earnings as of December 31, 2019 is:

Select one:

a. P646,560

b. P650,160

c. P709,360

d. P616,360