Newland Company reported retained earnings at December 31, 2016, of $310,000. Newland had 200,000 shares of common

Question:

Newland Company reported retained earnings at December 31, 2016, of $310,000.
Newland had 200,000 shares of outstanding at the beginning of 2017.
The following transactions occurred during 2017.
1. An error was discovered. In 2015, depreciation expense was recorded at $70,000, but the correct amount was $50,000.
2. A cash of $0.50 per share was declared and paid.
3. A 5% stock was declared and distributed when the market price per share was $15 per share.
4. Net income was $285,000.

Instructions
Prepare a retained earnings statement for 2017.

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