Foley Corporation has retained earnings of $3,000,000on January 1, 2017. During the year, Foley earned $1,300,000of net income. It declared and paid a $135,000cash dividend. In 2017, Foley recorded an adjustment of $108,000due to the overstatement (from mathematical error) of 2016 depreciation expense.

Prepare retained earnings statement for 2017.