Below is the Retained Earnings account for the year 2014 for Acadian Corp.

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

Retained earnings, January 1, 2014 $257,600 Add: $41,200 84,500 Gain on sale of investments (net of tax) Net income Refund on litigation with government, related to the year 2011 (net of tax) Recognition of income earned in 2013, but omitted from income statement in that year (net of tax) 21,600 25,400 172,700 430,300 Deduct: Loss on discontinued operations (net of tax) Write-off of goodwill (net of tax) Cumulative effect on income of prior years in changing from LIFO to FIFO inventory valuation in 2014 (net of tax) 35,000 60,000 23,200 Cash dividends declared 32,000 150,200 $280,100 Retained earnings, December 31, 2014