Statistical Research Service, Inc. (SRSI) ended 2008 with retained earnings of \(\$ 75,000\). During 2009 SRSI earned net income of \(\$ 90,000\) and declared dividends of \(\$ 30,000\). Also during 2009 , SRSI got a \(\$ 20,000\) tax refund from the Internal Revenue Service. A tax audit revealed that SRSI paid too much income tax back in 2007.

Prepare Statistical Research Service, Inc.'s statement of retained earnings for the year ended December 31, 2009, to report the priorperiod adjustment.