Portman Corporation has retained earnings of $$675,000$ at January $1,2025.$ Net income during $2025$ was $$1,400,000,$ and cash

dividends declared and paid during $2025$ totaled $$75,000.$ Prepare a retained earnings statement for the year ended December $31,$

Assume an error was discovered: land costing $$80,000($net of tax$)$ was charged to maintenance and repairs expense in $2024.$

$($List items that increase retained earnings first.$)$

PORTMAN CORPORATION

Retained Earnings Statement

For the Year Ended December $31,2025$

$

Retained Earnings, January $1,$ as Reported

Retained Earnings, January $1,$ as Adjusted