Question
(Retained Earnings Statement) Eddie Zambrano Corporation began operations on January 1, 2022. During its first 3 years of operations, Zambrano reported net income and declared
(Retained Earnings Statement) Eddie Zambrano Corporation began operations on January 1, 2022. During its first 3 years of operations, Zambrano reported net income and declared dividends as follows. Net Income Dividends Declared 2022 $33600 $-0- 2023 105,000 42,000 2024 134400 42,000 The following information relates to 2025. Income before income tax $201600 Prior period adjustment: understatement of 2023 depreciation expense (before taxes) 21,000 Dividends declared (of this amount, $21,000 will be paid on Jan. 15, 2026) 84000 Effective tax rate 20% Instructions Compose a 2025 retained earnings statement for Eddie Zambrano Corporation. Assume Eddie Zambrano Corporation restricted retained earnings in the amount of $58800 on December 31, 2025. After this action, what would Zambrano report as total retained earnings in its December 31, 2025, balance sheet?
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