Exercise 4-12 Statement of retained earnings Eddie Zambrano Corporation began operations on January 1, 2017. During its first 3 years of operations, Zambrano reported net income and declared dividends as follows: Net income Dividends declared 2017 $40,000 $ -0- 2018 125,000 50,000 2019 160,000 50,000 $240,00 The following information relates to 2020. Income before income tax Understatement of 2018 depreciation expense (before taxes) Cumulative decrease in income from change in inventory methods (before taxes) Dividends declared Effective tax rate $25,000 $35,000 $100,00 20 % Instructions: Prepare a 2020 retained earnings statement for Eddie Zambrano Corporation