On January 1, 2024, Fyre Lite Corporation had retained earnings of $650,000. During the year, Fyre Lite had the following selected transactions: 

1. Declared and paid cash dividends, $245,000. 

2. Earned profit before income tax, $750,000. 

3. Corrected a prior period error of $85,000, before income tax, which resulted in an understatement of profit in 2023. 

4. Reacquired 25,000 common shares for $50,000 more than the original issue price. This was the first time the company had ever reacquired its own shares. 

5. Completed a 3-for-1 stock split of the common shares. Fyre Lite has a 25% income tax rate and reports under ASPE. 

Instructions 

Prepare a statement of retained earnings for the year ended December 31, 2024.