Tuscan Inc. had a retained earnings balance of $64,000 at December 31, 2018. During the year, Tuscan had the following selected transactions. Reported net income of $104,000. Revised an estimate of a machine's salvage value. Depreciation increased by $1,400 per year. An error was discovered. Three years ago, a purchase of a building was incorrectly expensed. The effect is understated retained earnings of $16,000 (net of tax benefit). Paid cash dividends of $37,000.