Aquatic Equipment Corporation decided to switch from the LIFO method of costing inventories to the FIFO method at the beginning of 2021. The inventory as reported at the end of 2020 using LIFO would have been $61,000 higher using FIFO. Retained earnings at the end of 2020 was reported as $790,000 (reflecting the LIFO method). The tax rate is 34% Required: 1. Calculate the balance in retained earnings at the time of the change (beginning of 2021) as it would have been reported if FIFO had been used in prior years. 2. Prepare the journal entry at the beginning of 2021 to record the change in accounting principle Complete this question by entering your answers in the tabs below. Required 1 Required Calculate the balance in retained earnings at the time of the change (beginning of 2021) as it would have been reported if FIFO had been used in prior years. Balance in retained earnings $ 790,000 Required Required 2 > Required 1 Required 2 Prepare the journal entry at the beginning of 2021 to record the change in accounting principle. (If no entry is required for transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet