E3.12 (LO 3) Excel (Retained Earnings Statement) Eddie Zambrano Corporation began operations on January 1, 2022. During its first 3 years of operations, Zambran net income and declared dividends as follows. Net Income Dividends Declared 2022 $ 40,000 $ -0- 2023 125,000 50,000 2024 160,000 50,000 The following information relates to 2025. Income before income tax $240,000 Prior period adjustment: understatement of 2023 depreciation expense (before taxes) Dividends declared (of this amount, $25,000 will be paid on Jan. 15, 2026) Effective tax rate 25,000 100,000 20% Instructions a. Prepare a 2025 retained earnings statement for Eddie Zambrano Corporation. rted