The David Corporation's checkbook balance was $420,600 on December 31. According to its December 31 bank statement, the company's bank balance was $493,000. The company determined its outstanding checks were $89,000 and its outstanding deposits were $16,000 on December 31. Its bank statement showed the bank charged the company a $1,400 service charge and paid the company $800 interest in December. Determine the company's December 31 adjusted checkbook balance.

a. $347,600

b. $493,000

c. $420,000

d. $492,400