Instructions Prepare a condensed 2020 income statement for Spock Corporation. E4.12 (LO 5) (Retained Earnings Statement) Eddie Zambrano Corporation began oper- ations on January 1, 2017. During its first 3 years of operations, Zambrano reported net income and deelared dividends as follows. Net Income Dividends Declared 2017 $ 40,000 SO 2018 125,000 50,000 2019 160,000 50,000 The following information relates to 2020. Income before income tax $240,000 Prior period adjustment: understatement of 2018 depreciation expense (before taxes) $ 25,000 Cumulative decrease in income from change in inventory methods (before taxes) $ 35,000 Dividends declared (of this amount, $25,000 will be paid on Jan. 15, 2021) $100,000 Effective tax rate 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