Consider Artemis Co., a rare company that only has Cost of Goods Sold as a pretax expense and Sales as revenue. Suppose that Artemis decides in 2014 to change from LIFO to FIFO in its cost system. Artemis was incorporated on January 1, 2010 and faces a 40% tax rate. Its retained earnings at 12/31/13 was $5,200,000 and its retained earnings at 12/31/14 was $6,400,000.

Excerpts from Income Prior to Restatement (calculated with LIFO)

	2014	2013
Sales	$3,250,000	$2,750,000
COGS	(850,000)	(750,000)
Pretax Income	$2,400,000	$2,000,000
Tax Expense	(960,000)	(800,000)
Net Income	$1,440,000	$1,200,000

Suppose the following represents the COGS under LIFO and FIFO for each year 2010 to 2014.

	2014	2013	2012	2011	2010
LIFO	850,000	750,000	700,000	625,000	575,000
FIFO	820,000	725,000	650,000	600,000	600,000
Adjustment

Provide the Income After Restatement (calculated with FIFO)

	2014	2013
Sales
COGS
Pretax Income
Tax Expense
Net Income

Provide Retained Earnings for 12/31/13 and 12/31/14

	12/31/14	12/31/13
Retained Earnings