Vaughn Corporation began operations on January 1, 2017. During its first 3 years of operations, Vaughn reported net income and declared dividends as follows: Dividends declared Net income 2017 $ 48,200 $-0- 2018 126,000 55,400 2019 165,100 57,300 The following information relates to 2020 Income before income tax $ 225,300 Prior period adjustment: understatement of 2018 depreciation expense (before taxes) $ 28,400 Cumulative decrease in income from change in inventory methods (before taxes) $ 44,100 Dividends declared (of this amount, $ 28,400 will be paid on Jan. 15, 2021) $ 112,700 Effective tax rate 20 % (a) Prepare a 2020 retained earnings statement for Vaughn Corporation. (List items that increase adjusted retained earnings first.)