XV, Inc. estimates that its sales in 2019 will be $6,000,000. The firm plans to pay cash dividends of $100,000 during 2019. XV, Inc.'s income statement for the year ended December 31, 2018 is shown below. From your preparation of the pro forma income statement, answer the following multiple choice questions.

Sales revenue $5,000,000

Less: Cost of goods sold 2,750,000

Gross profits $2,250,000

Less: Operating expenses 850,000

Operating profits $1,400,000

Less: Interest expense 200,000

Net profits before taxes $1,200,000

Less: Taxes (rate40%) 480,000

Net profits after taxes $ 720,000

Less: Cash dividends 288,000

To retained earnings 432,0000

The amount that will transfer from the 2019 income statement to the 2019 balance sheet as an addition to retained earnings is ________.

Select one:

a. 1,300,000

b. 1,314,800

c. 2,358,000

d. 1,414,800