The December 31, 2014, balance sheet of Giorgio Inc., reported total assets of $1,050,000 and total liabilities of $680,000. The following information relates to the year 2015: Madden Inc. issued an additional 5,000 shares of common stock at $25 per share on July 1, 2015. Madden Inc. paid dividends totaling $80,000. Net income for 2015 was $110,000. No other changes occurred in stockholders equity during 2015.

The stockholders equity section of the December 31, 2015, balance sheet would report a balance of

a. $835,000. b. $525,000. c. $685,000. d. $400,000.