Blue Company began operations on July 1, 2015, and has used the average-cost method of inventory valuation since its inception. In 2019, it decides to switch to the FIFO method. You are provided with the following information: Net Income Retained Earnings (Ending Balance) Under Average-Cost Under FIFO Under Average Cost 2015 $54,000 $60,000 $57,000 2016 120,000 130,000 181,000 2017 169,000 195,000 304,000 2018 115,000 120,000 399,000 (a) What is the beginning retained earnings balance at January 1, 2016, if Blue prepares comparative financial statements starting in 2018? Retained earnings, January 1 $ (b) What is the beginning retained earnings balance at January 1, 2018, if Blue prepares comparative financial statements starting in 2018? Retained earnings, January 1