Question - At January 1, 2017, Headland Company reported retained earnings of $1,970,000. In 2017, Headland discovered that 2016 depreciation expense was understated by $436,000. In 2017, net income was $878,000 and dividends declared were $243,000. The tax rate is 40%.
Prepare a 2017 retained earnings statement for Headland Company.