Below is the Retained Earnings account for the year 2014 for Acadian Corp.
| Retained earnings, January 1, 2014 | $261,530 | |||
| Add: | ||||
| Gain on sale of investments (net of tax) | $45,130 | |||
| Net income | 88,430 | |||
| Refund on litigation with government, related to the year 2011 (net of tax) |
25,530 | |||
| Recognition of income earned in 2013, but omitted from income statement in that year (net of tax) |
29,330 | 188,420 | ||
| 449,950 | ||||
| Deduct: | ||||
| Loss on discontinued operations (net of tax) | 38,930 | |||
| Write off of goodwill (net of tax) | 63,930 | |||
| Cumulative effect on income of prior years in changing from LIFO to FIFO inventory valuation in 2014 (net of tax) |
27,130 | |||
| Cash dividends declared | 35,930 | 165,920 | ||
| Retained earnings, December 31, 2014 | $284,030 |
Prepare a corrected retained earnings statement. Acadian Corp. normally sells investments of the type mentioned above. FIFO inventory was used in 2014 to compute net income. (List items that increase retained earnings first.)