Critical Thinking 14-05 a Your answer is partially correct. Try again. The stockholders' equity accounts of Sunland, Inc., at January 1, 2020, are as follows. Preferred Stock, no par, 4,800 shares issued $480,000 Common Stock, no par, 144,000 shares issued 720,000 Retained Earnings 525,000 During 2020, the company had the following transactions and events. 1 Declared a $0.50 cash dividend per share on common stock. Aug 1 Discovered a $61,000 overstatement of 2019 depreciation expense. (Ignore income taxes.) Paid the cash dividend declared on July 1. Declared a 10% stock dividend on common stock when the market price of the stock was $12 per share. Declared a $8 per share cash dividend on preferred stock, payable January 31, 2021 31 Determined that net income for the year was $410,000 July Sept. 1 1 Dec. 15 (a) Determine the retained earnings balance at December 31, 2020 by preparing the retained earnings statement. There are no preferred dividends in arrears SUNLAND, INC. Retained Earnings Statement For the Year Ended December 31, 2020 Balance, January 1, as previously reported 525000 For the Year Ended December 31, 2020 Balance, January 1, as previously reported 525000 Correction of 2019 depreciation 61000 Balance, January 1, as corrected 586000 Add Net income/(Loss) 410000 996000 Less Cash dividends--preferred 38400 Cash dividends-common 72000 x Stock dividends-common 57600 168000 Balance, December 31 1164000