Crane Corporation began operations on January 1, 2017. During its first 3 years of operations, Crane reported net income and declared dividends as follows: 2017 Net income $47,800 130,500 167,700 Dividends declared $-0- 56,500 60,000 2018 2019 The following information relates to 2020. Income before income tax Prior period adjustment: understatement of 2018 depreciation expense (before taxes) Cumulative decrease in income from change in inventory methods (before taxes) Dividends declared (of this amount, $28,800 will be paid on Jan 15, 2021) Effective tax rate $248,300 $28,800 $43,000 $116,500 20 % Your answer is partially correct. Prepare a 2020 retained earnings statement for Crane Corporation. (List items that increase adjusted retained earnings first.) CRANE CORPORATION Retained Earnings Statement For the Quarter Ended December 31, 2020 Balance, January 1, as Reported $ 229,500 Correction for Depreciation Error 23,040 Cumulative Decrease in Income from Change in Inventory Methods 34,400 i Balance, January 1, as Adjusted 172,060 Add Net Income /(Loss) 198,640 370,700 Less : Dividends Declared 116,500 i Balance, December 31 $ 254,200 Your answer is incorrect. Assume Crane Corporation restricted retained earnings in the amount of $76,240 on December 31, 2020. After this action, what would Crane report as total retained earnings in its December 31, 2020, balance sheet? Total retained earnings $ 177,960 e Textbook and Media