Olivia Company began 2016 with a Retained Earnings account balance of $180,000. During 2016, the following 8 events occurred and were properly recorded by the company:

1. Bonds payable with a face value of $100,000 were issued on January 1 at 98. The bonds mature in 10 years. The bond provisions require the restriction of retained earnings (by means of a note to the financial statements) equal to one-half the face value of the bonds during the period the bonds are outstanding.
2. On April 13, Olivia reissued 2,400 shares of treasury stock for $25 per share. The company had reacquired these shares in 2014 at a cost of $20 per share. At that time, it had restricted retained earnings (by means of a note to the financial statements) in an amount equal to the cost of the treasury shares.
3. On January 5, Olivia recalled and retired 800 shares of $100 par preferred stock at the call price of $120 per share. The stock had originally been issued for $108 per share.
4. During June, Olivia declared and issued a 2-for-1 stock split on its common stock, reducing the par value from $10 to $5 per share. Immediately prior to the split, 10,000 shares of common stock were outstanding. The stock market price on the date of the split was $25 per share.
5. In August, Olivia declared and issued a 15% stock dividend when the common stock was selling at $13 per share.
6. During December, Olivia declared and paid its annual $1.30 per share cash dividend on the outstanding common stock.
7. Net income amounted to $72,000.
8. During the year-end audit, it was found that in 2015, Olivia had recorded depreciation on a particular machine twice. The error resulted in a $13,000 overstatement of depreciation during 2015. It was also found that, due to an oversight, a $10,000 loss on the sale of land was omitted from the 2015 income statement. Both items are material. The company has been subject to a 30% income tax rate for several years.

Prepare Olivia's statement of retained earnings and any related notes to its financial statements for the year ended December 31, 2016.

OLIVIA COMPANY
Statement of Retained Earnings
For Year Ended December 31, 2016
Retained earnings, as previously reported, January 1, 2016		$
Add: Correction of overstatement in 2015 depreciation (net of income taxes)
Less: Correction of omission of 2015 loss on sale of land (net of income tax credit)
Adjusted retained earnings, January 1, 2016		$
Add: Net Income
		$
Less: Stock dividends	$
Less: Cash dividends
Less: Reduction of retained earnings due to a retirement of preferred stock
Retained earnings, December 31, 2016		$