1.prepare a corrected retained earnings statement (ignore income tax effects). FIFO inventory was used in 2019 to compute net income 2.State where the items that do not appear in the corrected retainded earnings statement should be shown.

Com P4.7 (L04,5) (Retained Earnings Statement, Prior Period Adjustment) The following is the retained earnings account for the year 2019 for Acadian Corp $257,600 $41,200 84,500 Retained earnings, January 1, 2019 Add: Gain on sale of investments Net income Refund on litigation with government Recognition of income in 2018, but omitted from income statement in that year 21,600 25.400 172,700 430,300 35,000 60,000 Deduct: Loss on discontinued operations Write-off of goodwill Cumulative effect on income of prior years in changing from average-cost to FIFO inventory valuation in 2019 Cash dividends declared Retained earnings, December 31, 2019 23,200 32,000 150.200 $280,100