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Eddie in 3 operations, Zambrano reported net income and declared dividends as follows 4 5 $ 240,000 25,000 35,000 100,000 40 Net Income Dividends Declared 6 2014 $ 40,000 $ 7 2015 125,000 50,000 8 2016 160,000 50,000 9 10 The following information relates to 2017 11 Income before income tax 12 Prior period adjustment: 13 understatement of 2015 depreciation expense (before taxes) 14 Cumulative decrease in income from change in inventory methods, 15 (before taxes) 16 Dividends declared (of this amount, $25,000 will be paid on Jan. 15, 2018) 17 Effective tax rate 18 19 Instructions: 20 (a) Prepare a 2017 retained earnings statement for Eddie Zambrano Corporation 21 22 Calculation of net income for 2017: 23 24 25 26 27 28 29 Calculation of beginning retained earnings: 30 31 32 33 34 35 36 37 38 39 EDDIE ZAMBRANO CORPORATION 40 Retained Earnings Statement 91 For the Year Ended December 31, 2017 42 23 14 45 6 97 38 19 spa DNM 1 2 3 EDDIE ZAMBRANO CORPORATION Retained Earnings Statement For the Year Ended December 31, 2017 (b) Assume Eddie Zambrano Corporation restricted retained earnings in the amount of $70,000 on December 31, 2017. After this action, what would Zambrano report as total retained earnings in its December 31, 2017, balance sheet? Retained earnings: Appropriated Unappropriated Total