Pharoah Co. decides at the beginning of 2020 to adopt the FIFO method of inventory valuation. Pharoah 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. Pharoah 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 9 760 841 December 31, 2019 180 230 910 779 December 31, 2020 310 380 1,040 1,020 Retained earnings reported under LIFO are as follows. Retained Earnings Balance December 31, 2018 $910 December 31, 2019 1,670 December 31, 2020 2,300 Other information: 1. For each year presented, sales are $2,740 and operating expenses are $1,070 2. Pharoah provides two years of financial statements. Earnings per share information is not required