145 Reporting Changes in Shareholders' Equity The shareholders' equity accounts for Erle Enterprises Inc. at the beginning of the year were as follows: Preferred shares (10,000 issued) Common shares (900,000 issued) $300,000 900,000 Contributed surplus 3,000 Retained earnings 400,000 Accumulated other comprehensive Income 15,000 During the year the following transactions/events took place: 1A2-for-1 preferred stock split; market price was $30 2. Repurchased 10,000 common shares for $10.000 3. Profit before tax was $200.000 4.Other comprehensive income, net of tax, was $20,000 5. Inventory was debited $20,000 to correct a prior period error The tax rate for Erle Enterprises is 30%. What would be the balance in the Retained Earnings account at the end of the year? $620,000 $540,000 $554,000 $574,000