$25$ pts$.$ Cotton Company has the following balance sheets and retained earnings statements prepared using FIFO:

Cotton changed from FIFO to LIFO on January $1,2022.$ December $31,2022$ inventory at LIFO is $$17,000$ while December $31,2021$ inventory at LIFO is $$21,000.$ Inventory at January $1,2021$ was zero.

a$.$ Prepare the income and retained earnings statements in the format above assuming $2022$ will be shown alone and without comparison to prior years.