In fiscal 2017, Upshall Ltd. (Upshall) pur chased land for $250,000. For some reason, the land was expensed when it was pur chased. A new employee in the accounting department who was asked to review the company's property, plant, and equipment discovered the error in 2019. Retained earnings on December 31, 2018, Upshall's last year-end, was $3,250,000.

Required:
Prepare the journal entry that must be made in Upshall's books to correct the error. What would retained earnings be on December 31, 2019 after the error had been cor rected? Explain why the error is corrected in this way.