a)

b) Assume Novak Corporation restricted retained earnings in the amount of $ on December 31, 2020. After this action, what would Novak report as total retained earnings in its December 31, 2020, balance sheet? Total retained earnings $

Novak Corporation began operations on January 1, 2022. During its first 3 years of operations, Novak reported net income and declared dividends as follows. The following information relates to 2025. Income before income tax Prior period adjustment: understatement of 2023 depreciation expense (before taxes) Dividends declared (of this amount, $32,000 will be paid on Jan. 15,2026 ) Effective tax rate $307,200 32,000 128,000 20% Prepare a 2025 retained earnings statement for Novak Corporation. (List items that increase adjusted retained earnings first.)