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Sandhill Company started operations on January 1, 2020, and has used the FIFO method of inventory valuation since its inception. In 2026, it decides to
Sandhill Company started operations on January 1, 2020, and has used the FIFO method of inventory valuation since its inception. In 2026, it decides to switch to the average-cost method. You are provided with the following information. Net Income Retained Earnings (Ending Balance) Under FIFO Under Average-Cost Under FIFO 2020 $105,600 $96,500 $103,600 2021 71,200 66,700 150,300 2022 94,400 85,200 254,600 2023 120,900 131,600 321,300 2024 278,800 268,400 $66,000 2025 277,800 283,200 756,600 * Your answer is incorrect. What is the beginning retained earnings balance at January 1, 2025, if Sandhill prepares comparative financial statements starting in 2025? Retained earnings, January 1 eTextbook and Media 548,900
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