Leonard Corporation reports the following information: Correction of overstatement of depreciation expense in prior years, net of tax Dividends declared Net income Retained earnings, 1/1/20, as reported $ 645,000 480,000 1,500,000 6,000,000 Leonard should report retained earnings, 1/1/20, as adjusted at 1. $6,000,000. 2. $5,355,000. 3. $6,645,000. 4. $7,665,000.