Linden Company started operations on January 1, 2006, and has used the FIFO method of inventory valuation since its inception. In 2012, it decides to switch to the average cost method. You are provided with the following information.

Retained Earnings (Ending Balance) Net Income Under FIFO Under Average Cost Under FIFO 2006 2007 2008 2009 2010 2011 $100,000 70,000 90,000 120,000 300,000 305,000 $92,000 65,000 80,000 130,000 293,000 310,000 $100,000 160,000 235,000 340,000 590,000 780,000 (a) What is the beginning retained earnings balance at January 1, 2008, if Linden prepares comparative financial statements starting in 2008? (b) What is the beginning retained earnings balance at January 1, 2011, if Gordon prepares comparative financial statements starting in 2011? (c) What is the beginning retained earnings balance at January 1, 2012, if Gordon prepares single period financial statements for 2012? (d) What is the net income reported by Gordon in the 2011 income statement if it prepares comparative financial statements starting with 2009? 2009 2010 2011 Net Income