(L03) At January 1, 2017, Beidler Company reported retained earnings of $2,000,000. In 2017, Beidler discovered that 2016 depreciation expense was understated by $400,000. In 2017, net income was $900,000 and dividends declared were $250,000.

The tax rate is 40%. Prepare a 2017 retained earnings statement for Beidler Company.