Exercise 4-12 (Part Level Submission) Stellar Corporation began operations on January 1, 2014. During its first 3 years of operations, Stellar reported net income and declared dividends as follows: Dividends declared 2014 2015 2016 Net income $43,200 131,900 168,500 56,400 55,200 The following information relates to 2017. Income before income tax Prior period adjustment: understatement of 2015 depreciation expense (before taxes) Cumulative decrease in income from change in inventory methods (before taxes) Dividends declared (of this amount, $29,300 will be paid on January 15, 2018) Effective tax rate $232,700 $29,300 $39,000 $111,600 40 % (a) Prepare a 2017 retained earnings statement for Stellar Corporation. (List items that increase adjusted retained earnings first.) STELLAR CORPORATION Retained Earnings Statement