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Blossom Corporation began operations on January 1, 2017. During its first 3 years of operations, Blossom reported net income and declared dividends as follows: Net income Dividends declared 2017 $43,300 $ -0- 2018 127,900 52,400 2019 165,300 51,100 The following information relates to 2020. Income before income tax $227,400 Prior period adjustment: understatement of 2018 depreciation expense (before taxes) $25,900 Cumulative decrease in income from change in inventory methods (before taxes) $41,100 Dividends declared (of this amount, $25,900 will be paid on Jan. 15, 2021) $103,500 Effective tax rate 20 % Prepare a 2020 retained earnings statement for Blossom Corporation. (List items that increase adjusted retained earnings first.) BLOSSOM CORPORATION Retained Earnings Statement For the Year Ended December 31, 2020 Balance, January 1, as Reported $ Correction for Depreciation Error Cumulative Decrease in Income from Change in Inventory Methods Balance, January 1, as Adjusted Add : Net Income /(Loss) Less : Dividends Declared 103500 i Balance, December 31 $ Question Part Score 0.2/0.33 Your Answer Correct Answer X Your answer is incorrect. this action, Assume Blossom Corporation res ed retained earnings in the amo of $75,090 on De ber 31, 2020. A what would Blossom report as total retained earnings in its December 31, 2020, balance sheet? Total retained earnings e Textbook and Media Solution

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