On January 1, 2014, Richard Corporation had retained earnings of $550,000. During the year, Richard had the following selected transactions.
1. Declared cash dividends $96,000.
2. Corrected overstatement of 2013 net income because of depreciation error $40,000.
3. Earned net income $350,000.
4. Declared stock dividends $80,000.
Prepare a retained earnings statement for the year. (List items that increase retained earnings first.)