Marin Co. decides at the beginning of 2020 to adopt the FIFO method of inventory valuation. Marin had used the LIFO method for financial reporting since its inception on January 1, 2018, and had maintained records adequate to apply the FIFO method retrospectively. Marin 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. Income taxes are ignored.

Inventory Determined by Cost of Goods Sold Determined by

Date LIFO Method FIFO Method LIFO Method FIFO Method

January 1, 2018 $ 0 $ 0 $ 0 $ 0

December 31, 2018 90 8 830 912

December 31, 2019 200 220 920 818

December 31, 2020 330 430 1,020 940

Retained earnings reported under LIFO are as follows.

Retained Earnings Balance

December 31, 2018 $870

December 31, 2019 1,650

December 31, 2020 2,330

Other information:

1. For each year presented, sales are $2,770 and operating expenses are $1,070.

2. Marin provides two years of financial statements. Earnings per share information is not required.

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(a)

Prepare income statements under LIFO for 2018, 2019, and 2020.

MARIN CO.

Income Statement

For the Year Ended December 31

LIFO

2018 2019 2020

select an income statement item $enter a dollar amount $enter a dollar amount $enter a dollar amount

select an income statement item enter a dollar amount enter a dollar amount enter a dollar amount

select an income statement item enter a dollar amount enter a dollar amount enter a dollar amount

select a closing name for this statement $enter a total net income or loss amount $enter a total net income or loss amount$enter a total net income or loss amount

Prepare income statements under FIFO for 2018, 2019, and 2020.

MARIN CO.

Income Statement

For the Year Ended December 31

FIFO

2018 2019 2020

Select an income statement item $enter a dollar amount $enter a dollar amount $enter a dollar amount

select an income statement item enter a dollar amount enter a dollar amount enter a dollar amount

select an income statement item enter a dollar amount enter a dollar amount enter a dollar amount

select a closing name for this statement $enter a total net income or loss amount $enter a total net income or loss amount $enter a total net income or loss amount