Question 4 of 5 View Policies Show Attempt History < > Current Attempt in Progress Your answer is partially correct. 0.33/1 Lily Corporation, a private company, began operations on January 1, 2020. During its first three years of operations, Lily reported net income and declared dividends as follows: Net income Dividends declared 2020 $54,000 $0 2021 134,000 50,000 2022 164,000 50,000 The following information is for 2023: Income before income tax $360,000 Correction of prior period error: understatement of 2021 depreciation expense (before tax) 39,000 Cumulative increase in prior years' income from change in inventory method (before tax) 49,000 Dividends declared (of this amount, $25,000 will be paid on January 15, 2024) Effective tax rate 100,000 40% Prepare a 2023 statement of retained earnings for Lily. The company follows ASPE. (List items that increase retained earnings first after adjusted balance.)