Salt & Pepper, Inc., had retained earnings at the beginning of the current year of $$460,000.$ During the year, the company earned net income of $$250,000$ and declared dividends as follows. Salt & Pepper, Inc., had retained earnings at the beginning of the current year of $$460,000.$ During the year, the

company earned net income of $$250,000$ and declared dividends as follows.

$$1$ per share for the current$-$year dividend on the $10,000$ shares of preferred stock outstanding.

$$1$ per share for the dividend in arrears for one year on the $10,000$ shares of preferred stock outstanding.

$$0\mathrm{.}50$ per share for the current$-$year dividend on the $200,000$ shares of common stock outstanding.

In addition, the company discovered an overstatement in the prior year's net income of $$65,000$ and corrected

that error in the current year.

Prepare a statement of retained earnings for the year.

$$1$ per share for the current$-$year dividend on the $10,000$ shares of preferred stock outstanding.

$$1$ per share for the dividend in arrears for one year on the $10,000$ shares of preferred stock outstanding.

$$0\mathrm{.}50$ per share for the current$-$year dividend on the $200,000$ shares of common stock outstanding.

In addition, the company discovered an overstatement in the prior year$$s net income of $$65,000$ and corrected that error in the current year.

Prepare a statement of retained earnings for the year.