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Current Attempt in Progress

At January $1,2025,$ Carla Company reported retained earnings of $$2,149,000.$ In $2025,$ Carla discovered that $2024$ depreciation

expense was understated by $$429,800.$ In $2025,$ net income was $$809,000$ and dividends declared were $$245,000.$ The tax rate is $20\%.$

Prepare a $2025$ retained earnings statement for Carla Company.

CARLA COMPANY

Retained Earnings Statement