Pronghorn Co. decides at the beginning of 2022 to adopt the FIFO method of inventory valuation. Pronghorn had used the average- cost method for financial reporting since its inception on January 1, 2022, and had maintained records adequate to apply the FIFO method retrospectively. Pronghorn concluded that FIFO is the preferable inventory method because it reflects the current cost of inventory on the statement of financial position. The following table presents the effects of the change in accounting policy on inventory and cost of goods sold. Inventory Determined by LIFO Cost of Goods Sold Determined by FIFO Date Method Method LIFO Method FIFO Method January 1, 2020 $0 $0 $0 $0 December 31, 2020 110 90 750 770 December 31, 2021 200 260 940 860 December 31, 2022 320 400 1,150 1,130 Retained earnings reported under average-cost are as follows.