Exercise 22-5 Presented below are income statements prepared on a LIFO and FIFO basis for Kenseth Company, which started operations on January 1, 2016. The company presently uses the LIFO method of pricing its inventory and has decided to switch to the FIFO method in 2017. The FIFO income statement is computed in accordance with the requirements of GAAP. Kenseth's profit-sharing agreement with its employees indicates that the company will pay employees 10% of income before profit-sharing. Income taxes are ignored. LIFO Basis F?FO Bass Sales Cost of goods sold Operating expenses Income before profit-sharing Profit-sharing expense Net income 2017 2016 2017 2016 $3,000 $3,000 $3,000 $3,000 1,130 1,000 1,100 940 1,000 1,000 1,000 1,000 900 1,060 870 1,000 100 $900 100 $783 $900 $804 $960 87 96 Answer the following questions. If comparative income statements are prepared, what net income should Kenseth report in 2016 and 2017? (Round answers to O decimal places, e.g. 125) 2017 2016 Net income Assume that Kenseth has a beginning balance of retained earnings at January 1, 2017, of $900 using the LIFO method. The company declared and paid dividends of $500 in 2017. Prepare the retained earnings statement for 2017, assuming that Kenseth has switched to the FIFO method. (Round answers to 0 decimal places, e.g. 125.) KENSETH COMPANY Retained Earnings Statement et anoo ads Net ncome Divialenol aun Question Attempts: Unlimited