A portion of the combined statement of income and retained earnings of Cullumber Inc. for the current year follows.

Income from continuing operations

$$14,928,750$

Loss from discontinued operations, net of applicable income tax $($Note $1)$

$1,406,750$

Net income

$13,522,000$

Retained earnings at the beginning of the year

$82,330,000$

$95,852,000$

Dividends declared:

On preferred stock$$$$6\mathrm{.}00$ per share

$$282,000$

On common stock$$$$1\mathrm{.}75$ per share

$14,770,000$

$15,052,000$

Retained earnings at the end of the year

$$80,800,000$