Cullumber Co. decides at the beginning of 2020 to adopt the FIFO method of inventory valuation. Cullumber had used the LIFO method for financial reporting since its inception on January 1, 2018, and had maintained records adequate to apply the FIFO method retrospectively. Cullumber concluded that FIFO is the preferable inventory method because it reflects the current cost of inventory on the balance sheet. The following table presents the effects of the change in accounting principles on inventory and cost of goods sold. Income taxes are ignored. Inventory Determined by Cost of Goods Sold Determined by Date LIFO Method FIFO Method LIFO Method FIFO Method January 1, 2018 $0 $0 $0 $0 December 31, 2018 90 9 730 811 December 31, 2019 180 220 960 839 December 31, 2020 290 370 1,120 1,080 Retained earnings reported under LIFO are as follows. Retained Earnings Balance December 31, 2018 $1,210 December 31, 2019 2,190 December 31, 2020 3,010 Other information: 1. For each year presented, sales are $2,960 and operating expenses are $1,020. 2. Cullumber provides two years of financial statements. Earnings per share information is not required. (a) Prepare income statements under LIFO for 2018, 2019, and 2020. CULLUMBER CO. Income Statement For the Year Ended December 31 2018 LIFO 2019 2020 $ CULLUMBER CO. Income Statement For the Year Ended December 31 2018 FIFO 2019 Prepare income statements under FIFO for 2018, 2019, and 2020. A +A 2020 A A