HW Question 2

Question 2 13 pts Diamond Corporation began operations on 1-1-2017. Diamond used the last-in- first-out (LIFO) inventory costing method from 1-1-2017 through 12-31-2019. Presented below are income statement and balance sheet numbers for those 3 years, i.e., based on LIFO. 2017, 2018 and 2019 financial statement numbers based on LIFO Income Statement 2017 2018 2012 CGS - LIFO 10,000 11,000 17,500 Net income 30,000 40,000 84,900 Balance Sheet 2017 2018 2019 12-31 Inventory - LIFO 1,000 2,000 5,000 Retained Earnings on 12-31 30,000 55,000 90,000 CGS = cost of goods sold Diamond Corporation changed its inventory costing method to the first-in-first-out method (FIFO) from LIFO as of 1-1-2020. Presented below are the cost of goods sold figures if the FIFO method had been used for 2019 and earlier years. 2017, 2018 and 2019 financial statement numbers based on FIFO 2017 2018 2019 CGS - FIFO 9,700 10,600 16,700 CGS = cost of goods sold When Diamond issued its 2020 financial statements in March of 2021, it elected to provide comparative statements from 2019 and 2018. The change will be accounted for using the retrospective approach. When Diamond issued its 2020 financial statements in March of 2021, what was the comparative Net Income for 2019? O 84,200 82,400 84,900 O 85,600 O 84,100 87.400 O 85,700