Keairnes Supplies decided to change from LIFO to FIFO as of January 1, 2011. The change is being made for both book and tax purposes.

1. Using LIFO, the beginning retained earnings as of January 1, 2009, was $182,000. Compute adjusted beginning retained earnings, using FIFO, as of January 1, 2009.
2. The 3-year comparative income statement for 2011 includes net income for 2009, 2010, and 2011. In that comparative income statement, prepared after the change for FIFO has been adopted, what amount of net income will be reported for eachyear?

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Net Income Computed Using LIFO Excess of LIFO Cost of Cost of Goods Sold $14.000 Goods Sold over FIFO Income Effect (Net of Tax) Year Prior to 2009 2009 2010 2011 $68,000 61,500 96,000 $ 9,000 4,800 5,250 7,500 $26,550 7,200 8,750 0,500 $40,450