Monty Company began operations on July 1, 2015, and has used the average-cost method of inventory valuation since its inception. In 2019, it decides to switch to the FIFO method. You are provided with the following information: Retained Earnings Net Income (Ending Balance) Under Average-Cost Under FIFO Under Average Cost 2015 $54,000 $58,000 $55,000 2016 122,000 132,000 187,000 2017 168,000 192,000 328,000 2018 109,000 114,000 406,000 (a) What is the beginning retained earnings balance at January 1, 2016, if Monty prepares comparative financial statements starting in 2018? Bet Retained earnings, January 1 $