Sheffield Corporation began operations on January 1, 2022. During its first 3 years of operations, Sheffield reported net income and declared dividends as follows. 2022 2023 2024 Net income $44,800 140,000 179,200 Income before income tax Dividends declared $-0- Effective tax rate 56,000 The following information relates to 2025. 56,000 Prior period adjustment: understatement of 2023 depreciation expense (before taxes) Dividends declared (of this amount, $28,000 will be paid on Jan. 15, 2026) $268,800 28.000 112,000 20%

Sheffeld Corporation began operations on January 1,2022. During its first 3 years of operations, Sheffield reported net income and declared dividends as follows