Step # 3 (Work Sheet # 3) Calculations to Determine Ending Retain Earnings Balance as at 12/31/2019 i) Adjustments to net income: Prepaid Rent ( in December) Expensed (1/2 year of $ Expensed (2c)) Current Portion of Prepaid Insurance (1/2 year of $ Unrecorded Depreciation Expense Expensed (2b) ) (From 2c) Pretax Adjustment to Net Income (Additional Expenses) ii) Net Income Before Tax Revenue - Expenses - Pretax Adj. to Net Income iin Income Tax Payable (Tax Rate) (Net Income) 20 (5 iv) Net Income After Tax