Question - When preparing the financial statements for the year ended December 31, 2015, the controller of XYZ Inc. discovered that the income tax expense for 2012 was understated by $33,000. The controller has also gathered the following information:
Retained earnings at December 31, 2014 $447,800
Cash dividends declared during 2015 45,000
Stock dividends declared during 2015 100,000
Net income for the year ended December 31, 2015 166,120
Prepare a statement of retained earnings for XYZ Inc. for the year ended December 31, 2015.