Adjustment Of Report Retained Earnings 548691

Moorman Corporation reports the following information:

Correction of understatement of depreciation expense in prior years, net of tax$ 645,000
Dividends declared480,000
Net income1,500,000
Retained earnings, 1/1/12, as reported3,000,000

Moorman should report retained earnings, 12/31/12, as adjusted at

A) $3,375,000.

B) $4,665,000.

C) $2,355,000.

D) $4,020,000.