Eddie Zambrano Corporation, a private company, began operations on January 1, 2017. During its first three years

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Eddie Zambrano Corporation, a private company, began operations on January 1, 2017. During its first three years of operations, Zambrano reported net income and declared dividends as follows:

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The following information is for 2020:Income before income tax .............................................................. $240,000Correction of prior period error: understatementof 2018 depreciation expense (before tax) ....................................... 25,000Cumulative increase in prior years? income fromchange in inventory method (before tax) .......................................... 35,000Dividends declared (of this amount, $25,000 willbe paid on January 15, 2021) ............................................................. 100,000Effective tax rate ........................................................................................ 40%

Instructions

Prepare a 2020 statement of retained earnings for Eddie Zambrano Corporation. The company follows ASPE.

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Related Book For  book-img-for-question

Intermediate Accounting Volume 1

ISBN: 978-1119496496

12th Canadian edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

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