Following are selected data of Kane Corporation at December 31, 1998:

Prepare a statement of retained earnings for the year ended December 31, 1998.

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Net income for the year $512,000 Dividends declared on preferred stock 72,000 Retained earnings appropriated during the year for future plant expansion. Dividends declared on common stock 240,000 64,000 Retained earnings, January 1, unappropriated. 720,000 Directors ordered that the balance in the "Appropriation per loan agreement," related to a loan repaid on March 31, 1998, be returned to unappropriated retained carnings 480.000