The Blue Spruce Corporation, a private company, began operations on January 1. 2017. During its first three years of operations, Blue Spruce reported net income and declared dividends as follows: Net income Dividends declared Question 1 Question 2 2017 $54,000 2018 131,000 2019 153.000 The following information is for 2020 $0 50,000 50,000 Question 3 Viewing Question 4 Question 5 Income before income tax $350,000 Correction of prior period error: understatement of 2018 depreciation expense (before tax) Cumulative increase in prior years' income from change in inventory method (before tax) 39,000 49,000 Dividends declared (of this amount, $25,000 will be paid on January 15, 2021) Effective tax rate 100,000 40% Prepare a 2020 statement of retained earnings for Blue Spruce Corporation. The company follows ASPE. (List items that increase retained earnings.first. U