The Francine Company began the year with a balance in retained earnings of $120,000 and 55,000 shares of $1 par common stock outstanding. During the year, the company reported sales of $500,000, expenses of $200,000, and declared and paid a $0.40 per share cash dividend. How much is the balance in the Retained Earnings account at year-end?
$398,000
$420,000
$453,000
$508,000