Stellar Corporation Began Operations On January 1, 2014.

Stellar Corporation began operations on January 1, 2014. During its first 3 years of operations, Stellar reported net income and declared dividends as follows.

	Net income	Dividends declared
2014	$49,500	$ ?0?
2015	128,600	59,600
2016	161,000	58,800

The following information relates to 2017.

Income before income tax	$248,500
Prior period adjustment: understatement of 2015 depreciation expense (before taxes)	$29,000
Cumulative decrease in income from change in inventory methods (before taxes)	$40,900
Dividends declared (of this amount, $29,000 will be paid on January 15, 2018)	$114,400
Effective tax rate	40	%

Prepare a 2017 retained earnings statement for Stellar Corporation.?(List items that increase adjusted retained earnings first.)

STELLAR CORPORATIONRetained Earnings Statement ?December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017
?Correction for Depreciation ErrorCumulative Decrease in Income from Change in Inventory MethodsDividends DeclaredExpensesNet Income / (Loss)Retained Earnings, January 1, as AdjustedRetained Earnings, January 1, as ReportedRetained Earnings, December 31RevenuesTotal ExpensesTotal Revenues	$
?Correction for Depreciation Error Cumulative Decrease in Income from Change in Inventory Methods Dividends Declared Expenses Net Income / (Loss) Retained Earnings, January 1, as Adjusted Retained Earnings, January 1, as Reported Retained Earnings, December 31 Revenues Total Expenses Total Revenues
?Correction for Depreciation Error Cumulative Decrease in Income from Change in Inventory Methods Dividends Declared Expenses Net Income / (Loss) Retained Earnings, January 1, as Adjusted Retained Earnings, January 1, as Reported Retained Earnings, December 31 Revenues Total Expenses Total Revenues
?Correction for Depreciation ErrorCumulative Decrease in Income from Change in Inventory MethodsDividends DeclaredExpensesNet Income / (Loss)Retained Earnings, January 1, as AdjustedRetained Earnings, January 1, as ReportedRetained Earnings, December 31RevenuesTotal ExpensesTotal Revenues
?AddLess : ?Correction for Depreciation ErrorCumulative Decrease in Income from Change in Inventory MethodsDividends DeclaredExpensesNet Income / (Loss)Retained Earnings, January 1, as AdjustedRetained Earnings, January 1, as ReportedRetained Earnings, December 31RevenuesTotal ExpensesTotal Revenues

?AddLess : ?Correction for Depreciation ErrorCumulative Decrease in Income from Change in Inventory MethodsDividends DeclaredExpensesNet Income / (Loss)Retained Earnings, January 1, as AdjustedRetained Earnings, January 1, as ReportedRetained Earnings, December 31RevenuesTotal ExpensesTotal Revenues
?Correction for Depreciation ErrorCumulative Decrease in Income from Change in Inventory MethodsDividends DeclaredExpensesNet Income / (Loss)Retained Earnings, January 1, as AdjustedRetained Earnings, January 1, as ReportedRetained Earnings, December 31RevenuesTotal ExpensesTotal Revenues	$

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Assume Stellar Corporation restricted retained earnings in the amount of $74,150 on December 31, 2017. After this action, what would Stellar report as total retained earnings in its December 31, 2017, balance sheet?

Total retained earnings

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