Lester Corporation reports $$119,000$ of both pretax accounting "income" and taxable income in Year $4.$ In addition to income from continuing operations $($of which revenues are $$500,000),$ included in this "income" are a $$17,000$ loss from operations of discontinued Division W$,$ a $$15,000$ gain on the disposal of Division W$,$ and a $$14,000$ correction of an error due to the understatement of bad debt expense in Year $3.$ Lester is subject to a $20\%$ tax rate on the first $$50,000$ of income and a rate of $25\%$ on income in excess of $$50,000.$

$1.$ Show how this information is disclosed on Lester's Year $4$ income statement

$2.$ Prepare Lester's Year $4$ statement of retained earnings. $($Assume a beginning retained earnings balance of $$191,000$ and cash dividends during Year $4$ amounting to $$65,000.)\text{'}$s Year $4$ income statement.