Ayayai Corporation prepares financial statements in accordance with ASPE. At January $1,2023,$ the company had retained earnings of $$1,370,000.$ In $2023,$ net income was $$348,000,$ and cash dividends of $$75,000$ were declared and paid.

Prepare a statement of retained earnings for Ayayai Corporation, assuming that in $2023,$ Ayayai discovered that it had overstated $2020$ depreciation by $$38,000($net of tax of $$17,000).($List items that increase retained earnings first after adjusted balance$)$

Ayayai Corporation Statement of Retained Earnings

For the Year Ended December $31,2023$

Balance, January $1,$ as adjusted

Balance, January $1,$ as reported

Balance, December $31$

Correction for Overstatement of Depreciation in $2023($Net of Tax of $$17,000)$

Correction for Understatement of Depreciation in $2023($Net of Tax of $$17,000)$

Dividends

Net Income$/($Loss$)$