Portland Corporation Reports the Following Information Portland Should Report Retained Earnings at January 1, 2020, as of understatement

Portland Corporation reports the following information: $\begin{array}{llcc} \text {Correction of understatement of depreciation expense } & \\ \text {in prior years, net of tax........................................ } &\$1,376,000\\ \text { Dividends declared..............................................} &1,024,000\\ \text { Net income......................................................... } &3,200,000\\ \text { Retained earnings, January 1,2020 , as reported........................ } &6,400,000\\\end{array}$ Portland should report retained earnings at January 1, 2020, as adjusted at

A) $5,024,000.
B) $7,200,000.
C) $8,576,000.
D) $9,952,000.