Current Attempt in Progress

Tamarisk Corporation began operations on January $1,2022.$ During its first $3$ years of operations, Tamarisk reported net income and

declared dividends as follows:

The following information relates to $2025.$

Income before income tax

$$931,000$

Prior period adjustment: understatement of $2023$ depreciation expense $($before taxes$)$

$$117,000$

Cumulative decrease in income from change in inventory methods $($before taxes$)$

$$156,000$

Dividends declared $($of this amount, $$117,000$ will be paid on Jan. $15,2026)$

$$452,000$

Effective tax rate

$20\%$

$($a$)$

Prepare a retained earnings statment