Oak Research Inc. (ORI) ended 2013 with Retained Earnings of $37,500. During 2014, ORI earned net income of $40,000 and declared dividends of $15,000. Also during 2014, ORI got a $12,000 tax refund from Canada Revenue Agency. A tax audit revealed that ORI in error paid too much income tax in 2012.
Prepare ORI's statement of retained earnings for the year ended December 31, 2014, to report the correction of the prior-period error.