Retained Earnings Example Turgeon Corporation had retained earnings of $529,000 at January 1, 1999. Net income in 1999 was $1,496,000, and cash dividends of $650,000 were declared and paid. Prepare a 1999 retained earnings statement for Turgeon Corporation. Also, prepare a retained earnings statement for Turgeon Corporation, assuming that in 1999 Turgeon discovered that it had overstated 1997 depreciation by $125,000 (net of tax)