$265,050 Retained earnings, January 1, 2017 Add: Gain on sale of investments (net of tax) $48,650 Net income 91,950 Refund on litigation with government, related to the year 2014 (net of tax) 29,050 Recognition of income earned in 2016, but omitted from income statement in that year (net of tax) 32,850 202,500 467,550 Study Deduct: Loss on discontinued operations (net of tax) Write-off of goodwill (net of tax) Cumulative effect on income of prior years in changing from LIFO to FIFO inventory valuation in 2017 (net of tax) Cash dividends declared 42,450 67,450 30,650 39,450 180,000 $287,550 Retained earnings, December 31, 2017 (a) Prepare a corrected retained earnings statement increase adjusted retained earnings first.) normally sells investments of the type mentioned above. FIFO IL Retained Earnings scarcement Retained Earnings Statement tudy