At December 31, 2005, Eagle Corp. reported $1,750,000 of appropriated retained earnings for the construction of a new office building, which was completed in 2006 at a total cost of $1,500,000. In 2006, Eagle appropriated $1,200,000 of retained earnings for the construction of a new plant. Also, $2,000,000 of cash was restricted for the retirement of bonds due in 2007. In its 2006 balance sheet, Eagle should report what amount of appropriated retained earnings?

  1. $1,200,000
  2. $1,450,000
  3. $2,950,000
  4. $3,200,000