The shareholders' equity section of Sundberg Corporation's statement of financial position at December 31 is presented here. SUNDBERG CORPORATION Statement of Financial Position (partial) Shareholders' equity Contributed capital $4 Preferred shares, cumulative, 12,000 authorized, 5,000 shares issued $900,000 Common shares, 720,000 authorized, 590,000 shares issued 2,212,500 Contributed surplus 88,000 Total contributed capital Retained earnings 3,200,500 1,181,000 Total shareholders' equity $4,381,500 Your answer is incorrect. If dividends of $18,000 were in arrears on preferred shares, what would be the balance reported for retained earnings? Retained earnings balance $