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