Buster Corporation has the following items for the year ending December 31, 20XX.

Retained earnings, balance, January 1 - $1,600,000;

corrected an error that had understated the net income two years ago - 70,000;

net income (current year) - 150,000;

during the current year, Buster changed its inventory method from average cost to FIFO and the cumulative effect on prior years was to decrease beginning retained earnings - 21,000.

Instructions: prepare in proper format the retained earnings statement.