The Don't Tread on Me Tire Company had retained earnings at December 31, 2015 of $219,000. During 2016, the company had revenues of $419,000 and expenses of $359,500, and the company declared and paid dividends of $12,900. Retained earnings on the balance sheet as of December 31, 2016 will be:

a. $278,500.

b. $325,100.

c. $46,600.

d. $265,600.