P4-6 (Retained Earnings Statement, Prior Period Adjustment) Below is the Retained Earnings account for the year 2012 for Acadian Corp. Retained earnings, January 1, 2012 $257,600 Add: Gain on sale of investments (net of tax) $41,200 Net income 84,500 Refund on litigation with government, related to the year 2009 (net of tax) 21,600 Recognition of income earned in 2011, but omitted from income statement in that year (net of tax) 25,400 172,700 430,300 Deduct: Loss on discontinued operations (net of tax) 35,000 Write-off of goodwill (net of tax) 60,000 Cumulative effect on income of prior years in changing from LIFO to FIFO inventory valuation in 2012 (net of tax) 23,200 Cash dividends declared 32,000 150,200 Retained earnings, December 31, 2012 $280,100 Instructions