Domicile, Inc., a household products chain, reported a prior period adjustment in 2010. An accounting error caused net income of 2009 to be overstated by $16 million. Retained earnings at December 31, 2009, as previously reported, stood at $342 million. Net income for 2010 was $96 million, and 2010 dividends were $68 million.

Requirement
1. Prepare the company s statement of retained earnings for the year ended December 31, 2010. How does the prior-period adjustment affect Domicile s net income for 2010?