Exercise 4-15 The Novak Corporation, a private company, began operations on January 1, 2017. During its first three years of operations, Novak reported net income and declared dividends as follows: Dividends declared Net income 2017 2018 $54,000 136,000 160,000 $0 50,000 50,000 2019 The following information is for 2020: Income before income tax Correction of prior period error: understatement of 2018 depreciation expense (before tax) Cumulative increase in prior years' income from change in inventory method (before tax) Dividends declared (of this amount, $25,000 will be paid on January 15, 2021) Effective tax rate $360,000 39,000 49,000 100,000 40% Prepare a 2020 statement of retained earnings for Novak Corporation. The company follows ASPE. (List items that increase retained earnings first.) Novak Corporation Statement of Retained Earnings