5.2.2 INSTRUCTIONS: Complete exercises A and B. A. Compute the Ending Retained Earnings balance based on the information below: Net Income Dividends Declared 2017 $ 40,000 $-0- 2018 125,000 50,000 2019 160,000 50,000 The following information relates to 2020. Income before income tax Prior period adjustment; understatement of 2018 depreciation expense (before taxes) Cumulative decrease in income from change in inventory methods (before taxes) Dividends declared (of this amount, $25,000 will be paid on Jan. 15,2021) Effective tax rate $240,000 $ 25,000 $ 35,000 $100,000 20% B. Compute the complete Earnings per share Presentation based on the information below: 10% cumulative preferred stock, $100 par, 107,500 shares $10,750,000 Common stock, $5 par, 4,000,000 shares 20,000,000 During 2020, Shiga Nadya did not issue any additional common stock. The following also occurred dur- ing 2020 Income from continuing operations before taxes $23,650,000 Discontinued operations (loss before taxes) $ 3,225,000 Preferred dividends declared $ 1,075,000 Common dividends declared $ 2,200,000 Effective tax rate 17%