$[$The following information applies to the questions displayed below.$]$

Sanchez Company engaged in the following transactions during Year $1$:

$1)$ Started the business by issuing $$13,500$ of common stock for cash.

$2)$ The company paid cash to purchase $$8,100$ of inventory.

$3)$ The company sold inventory that cost $$5,500$ for $$11,400$ cash.

$4)$ Operating expenses incurred and paid during the year, $$5,000.$

Sanchez Company engaged in the following transactions during Year $2$:

$1)$ The company paid cash to purchase $$11,800$ of inventory.

$2)$ The company sold inventory that cost $$9,700$ for $$18,000$ cash.

$3)$ Operating expenses incurred and paid during the year, $$6,000.$

Note: Sanchez uses the perpetual inventory system.

What is the amount of retained earnings that will be shown on the balance sheet at December $31,$ Year $2?$

Multiple Choice

$$2,300$

$$8,000$

$$3,200$

$$13,700$