Retained Earnings Titanic Corporation's net income for the year is $400,000. On June 30 , a $0.50 per-share cash dividend was declared for all common stockholders. Common stock in the amount of 39,000 shares was outstanding at the time. The market price of Titanic's stock at year end is $19 per share. Titanic had a $1,200,000 credit balance in retained earnings at the beginning of the year. Assume that in July 31 , Titanic discovered that prior year's depreciation was overstated by $80,000. Required: Prepare Titanic's retained earnings statement assuming the prior year tax rate was 21%