Just Q b

Instructions Prepare a condensed 2020 income statement for Spock Corporation. E4.12 (LO 5) (Retained Earnings Statement) Eddie Zambrano Corporation began operations on January 1, 2017. During its first 3 years of operations, Zambrano reported net income and deelared dividends as follows. The following information relates to 2020 . IncomebeforeincometaxPriorperiodadjustment:understatementof2018depreciationexpense(beforetaxes)Cumulativedecreaseinincomefromchangeininventorymethods(beforetaxes)Dividendsdeclared(ofthisamount,$25,000willbepaidonJan.15,2021)Effectivetaxrate$240,000$25,000$35,000$100,00020% 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