Retained earnings for Smith Corporation as reported on January 1, 1997 was $40,000. During 1997, net income of $15, 400 was earned and $12,000 of dividends were distributed. In addition, the following two material errors were found in 1997: At the end of 1996, ending inventory was overstated by $5,000. In 1996, equipment depreciation was recorded at $5,000 instead of te correct $4,000. The tax rate is 30%. Prepare a statement of retained earnings for the year ended December 31, 1997