26.

On January 1, 2017, Chu Corporation had retained earnings of $422,000. During the year, Chu had the following selected transactions:

1. Declared cash dividends of $100,000.

2. Suffered a loss of $70,000.

3. Corrected understatement of 2016 profit because of an inventory error $45,000. The company has a 30% income tax rate.

Instructions

Prepare a statement of retained earnings for the year.