prepare a 2020 retained earnings statement for jason woo corporation

QUESTION 4 Problem 4-Statement of Retained Earnings Jason Woo Corporation began operations on January 1, 2017. During its first 3 years of operations, Woo reported net income and declared dividends as follows. Net income 2017 $160,000 2018 500,000 2019 740,000 Dividends declared $ 0 100,000 200,000 The following information relates to 2020 $960,000 $200,000 Income before income tax Prior period adjustment: understatement of 2015 depreciation expense (before taxes) Cumulative increase in income from change in inventory methods (before taxes) Dividends declared (of this amount, $100,000 will be paid on Jan. 15, 2021) Effective tax rate $240,000 $400,000 40% Instructions: Prepare a 2020 retained earnings statement for Jason Woo Corporation