its theoretical rationale. $($Do not prepare a revised statement.$)$

P$4\mathrm{.}6($LO $3,4,5)($Retained Earnings Statement, Prior Period Adjustment$)$ Below is the Retained Earnings account for the year $2020$ for Acadian Corp.

$\backslash$table$[[$Retained earnings, January $1,2020],[$Add:$],[$Gain on sale of investments $($net of tax$)],[$Net income$],[$Refund on litigation with government, related to the year $2017($net of tax$)],[$Recognition of income earned in $2019,$ but omitted from income statement in that year $($net of tax$)],[],[$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 $2020($net of tax$)],[$Cash dividends declared$],[$Retained earnings, December $31,2000]]$

Instructions

a$.$ Prepare a corrected retained earnings statement. Acadian Corp. normally sells investments of the type mentioned above. FIFO inventory was used in $2020$ to compute net income.

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