Exercise 22-3 Ivanhoe Co. decides at the beginning of 2017 to adopt the FIFO method of inventory valuation. Ivanhoe had used the LIFO method for financial reporting since its inception on January 1, 2015, and had maintained records adequate to apply the FIFO method retrospectively. Ivanhoe 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. Inventory Determined Cost of Goods Sold Determined by by LIFO FIFO Method Method LIFO Method FIFO Method Date 0 0 0 0 January 1, 2015 December 31, 2015 830 912 90 December 31, 2016 200 920 818 December 31, 2017 430 940 330 1,020 Retained earnings reported under LIFO are as follows. Retained Earnings Balance December 31, 2015 $870 December 31, 2016 1,650 December 31, 2017 2,330 Other information: 1. For each year presented, sales are $2,770 and operating expenses are $1,070. 2. Ivanhoe provides two years of financial statements. Earnings per share information is not required