iii E4.12 (LO 5) Excel (Retained Earnings Statement) 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. The following information relates to 2020. 2017 2018 2019 Net Income Dividends Declared $ 40,000 125,000 160,000 $ 50,000 50,000 Income before income tax Prior period adjustment: understatement of 2018 depreciation expense (before taxes) Cumulative decrease in income from change in inventory methods (before taxes) Dividends declared (of this amount, $25,000 will be paid on Jan. 15, 2021) Effective tax rate $240,000 $ 25,000 $ 35,000 $100,000 20% Instructions a. Prepare a 2020 retained earnings statement for Eddie Zambrano Corporation. b. Assume Eddie Zambrano Corporation restricted retained earnings in the amount of $70,000 on December 31, 2020. After this action, what would Zambrano report as total retained earnings in its December 31, 2020, balance sheet?

The following informution telates to 2000 . Iscome before income tax rifective tax rate 20\% instruetiens