7 P4-7 (Retained Earnings Statement, Prior Period Adjustment The following is the mind Ning accounT fOR THE YEAR 2015 for Acadian Corp. Retained earnings, January 1, 2015 $257,600 Add: Gain on sale of investments $41 200 Net income 84,500 Refund on litigation with government 21,600 Recognition of income earned in 2014, but omitted from income statement in that year 25,400 172.700 430,300 Deduct Loss on discontinued operations 35.000 Write-off of goodwill Cumulative effect on income of prior years in changing from average-cost to FIFO mentory valuation in 2015 23.200 Cash dividends declared 32.000 150 200 Retained eamings. December 31, 2015 $280.100 Instructions a l'EPARE CORRETH NE RINGA STATEMENT doon INCOME TAX Ele) no Letony was used in 2015 To compuTE NETANO th) Stare where the inims that do not appear in the CORTI TENINT should be shown 60,000 Instructions (a) Prepare a CORRECTED RETAINED EARNINGS STATEMENT. NOR INCOME Tax ECTS) FIFO INVENTORY WAS used in 2015 TO COMPUTE NET income (b) STATE WHERE the items that do not appear in the CORRECT REaindraning STATEMENT should