Tamarack Research Inc. (TRI) ended 2019 with Retained Earnings of $37,500. During 2020 TRI earned net income of $50,000 and paid cash dividends of $15,000. Also during 2020 TRI got a $12,000 tax refund from the Canada Revenue Agency. A tax audit revealed that TRI paid too much income tax in 2018 in error.

Prepare TRI’s statement of retained earnings for the year ended December 31, 2020, to report the correction of the prior period error.