Captain Morgan Corporation was organized on January 1, 2017. During 2017, Captain had the following transactions relating to shareholders' equity:

Captain Morgan Corporation was organized on January 1, 2017. During 2017, Captain had the following transactions relating to shareholders' equity: (1) issued 10,000 shares of common stock at $7 per share; (2) issued 20,000 shares of common stock at $8 per share; (3) reported net income of $100,000 for 2017; (4) paid dividends of $50,000; (5) purchased 3,000 shares of treasury stock at $10 per share. Total shareholders' equity at the end of 2017 is:

1. A) $270,000.
2. B) $300,000.
3. C) $250,000.
4. D) $200,000.