Question 42 0.31/1 View Policies Show Attempt History Current Attempt in Progress Sarasota Corp. began operations in 2014. During the years 2014-2016, it reported net income and declared dividends as follows. Dividends declared Net income 2014 $33.000 $-0- 2015 129,000 -0 2016 233.000 57.000 During 2017, Sarasota Corp.: discovered that it had failed, in 2015, to record $38,000 in depreciation on equipment in one of its warehouses. changed, on January 1,2017, from the average cost to the FIFO method of accounting for its inventory. If Sarasota Corp. had applied the FIFO method to it inventory in prior years, cumulative net income before tax) would have been $19,000 lower than originally reported. reported income before income tax expense of $300.000. . declared and paid dividends to common shareholders of $90,000 Sarasota's effective income tax rate for all years was 40%. Your answer is partially correct. Prepare a 2017 retained earnings statement for Sarasota Corp. (List items that increase retained earnings first.) SARASOTA CORPORATION Retained Earnings Statement For the Year Ended December 31, 2017 Retained Earnings, January 1, as Reported Correction for Depreciation Error 38.000 - Your answer is partially correct. Prepare a 2017 retained earnings statement for Sarasota Corp. (List items that increase retained earnings first.) SARASOTA CORPORATION Retained Earnings Statement For the Year Ended December 31, 2017 Retained Earnings, January 1, as Reported Correction for Depreciation Error 7 38,000 Cumulative Decrease in Income from Change in Inventory Methods Retained Earnings, January 1, as Adjusted Add Net Income /(Loss) Less Dividends Declared 90.000 Retained Earnings, December 31 e Textbook and Media X Your answer is incorrect. Assume Sarasota Corp. restricted retained earnings in the amount of $63,000 on December 31, 2017. How would Sarasota Corp. present retained earnings on its December 31, 2017 balance sheet? Total retained earnings $