The Dayton Corporation began the current year with a retained earnings balance of $13,694. During the year, the company corrected an error made in the prior year, which was a failure to record a depreciation expense of $2,457 on equipment. Also, during the current year, the company earned net income of $16,638 and declared cash dividends of $5,814. Compute the year end retained earnings balance.

Select the correct answer.

$22,061

$38,603

$13,694

$24,518