Using the information from BE3.7, prepare a retained earnings statement for the year ended December 31, 2025. Assume an error was discovered: land costing $80,000 (net of tax) was charged to maintenance and repairs expense in 2025.

Data from BE3.7:

Portman Corporation has retained earnings of $675,000 at January 1, 2025. Net income during 2025 was $1,400,000, and cash dividends declared and paid during 2025 totaled $75,000. Prepare a retained earnings statement for the year ended December 31, 2025.