E22.4 Fort Texas 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 Under Average Cost Under FIFO Under Average Cost 2015 $ 55,000 $ 60,000 $ 55,000 2016 125,000 135,000 180,000 2017 165,000 190,000 315,000 2018 110,000 115,000 400,000 Instructions (a) What is the beginning retained earnings balance at January 1, 2016, if Fort Texas prepares comparative financial statements starting in 2018? (b) What is the beginning retained earnings balance at January 1, 2018, if Fort Texas prepares comparative financial statements starting in 2018? (c) What is the beginning retained earnings balance at January 1, 2019, if Fort Texas prepares comparative financial statements starting in 2019? (d) What is the net income reported by Fort Texas in the 2018 income statement if it prepares comparative financial statements starting with 2016