The following is the retained earnings account for the year 2015 for Acadian Corp.

Retained earnings, January 1, 2015 $257,600 Add:

Gain on sale of investments $41,200 Net income 84,500 Refund on litigation with government 21,600 Recognition of income earned in 2014, but omitted from income statement in that year 25,400 172,700 430,300 Deduct:

Loss on discontinued operations 35,000 Write-off of goodwill 60,000 Cumulative effect on income of prior years in changing from average-cost to FIFO inventory valuation in 2015 23,200 Cash dividends declared 32,000 150,200 Retained earnings, December 31, 2015 $280,100 Instructions

(a) Prepare a corrected retained earnings statement. (Ignore income tax effects.) FIFO inventory was used in 2015 to compute net income.

(b) State where the items that do not appear in the corrected retained earnings statement should be shown.