Pronghorn Inc. reported income from continuing operations before tax of $$2,595,500$ during $2023.$ Additional transactions occurring in $2023$ but not included in the $$2,595,500$ were as follows:

$1.$ The corporation experienced an insured flood loss of $$116,000$ during the year.

$2.$ At the beginning of $2021,$ the corporation purchased a machine for $$72,000($residual value of $$18,000)$ that has a useful life of six years. The bookkeeper used straight$-$line depreciation for $2021,2022,$ and $2023,$ but failed to deduct the residual value in calculating the depreciable amount.

$3.$ The sale of FV$-$NI investments resulted in a loss of $$155,150.$

$4.$ When its president died, the corporation gained $$145,000$ from an insurance policy. The cash surrender value of this policy had been carried on the books as an investment in the amount of $$66,700.($The gain is non$-$taxable.$)$

$5.$ The corporation disposed of its recreational division at a loss of $$166,750$ before tax. Assume that this transaction meets the criteria for accounting treatment as discontinued operations.

$6.$ The corporation decided to change its method of inventory pricing from average cost to the FIFO method. The effect of this change on prior years is to decrease $2022$ income by $$29,000$ before taxes. The FIFO method has been used for $2023.$Assume that beginning retained earnings for $2023$ is $$3,683,000$ and that dividends of $$253,750$ were declared during the year.

Prepare the retained earnings portion of the statement of changes in equity for $2023.($Round answers to $0$ decimal places, e$.$g$.$

$1,525.$ List items that increase retained earnings first. Enter negative amounts using either a negative sign preceding the number e$.$g$.-45$ or

parentheses e$.$g$.(45).)$

Pronghorn Inc.

Excerpt from Statement of Changes in Equity

For the Year Ended December $31,2023$

Retained Earnings, January $1,2023,$ As Reported

Correction of Depreciation Overstatement $($Net of Tax$)$

Retroactive Adjustment for Change in Inventory Method $($Net of Tax$)$

Retained Earnings, January $1,2023,$ As Adjusted

: Net Income$/($Loss$)$

: Dividends Declared

Retained Earnings, December $31,2023$

$