Eddie Corporation began operations on January 1, 2017. During its first 3 years of operations, it reported net income and declared dividends as follows. Net incomeDeclared dividends2014$40,000$02015125,00050 ,0002016160,00050,000The following information relates to 2017.Income before income tax$240,000Prior period adjustment: understatement of 2015 depreciation expense (before taxes) $ 25,000Cumulative decrease in income from change in inventory methods (before taxes)
35,000Dividends declared (of this amount, $25,000 will be paid on Jan. 15, 2018)
$100,000Effective tax rate 40%Prepare a 2017 retained earnings statement for Eddie Zambrano Corporation.