Sunland Co. decides at the beginning of 2017 to adopt the FIFO method of inventory valuation. Sunland had used the LIFO method for financial reporting since its inception on January 1, 2015, and had maintained records adequate to apply the FIFO method retrospectively. Sunland 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.

		Inventory Determined by				Cost of Goods Sold Determined by
Date		LIFO Method		FIFO Method		LIFO Method		FIFO Method
January 1, 2015		$ 0		$ 0		$ 0		$ 0
December 31, 2015		110		9		720		821
December 31, 2016		210		240		940		809
December 31, 2017		290		380		1,020		960

Retained earnings reported under LIFO are as follows.

		Retained Earnings Balance
December 31, 2015		$1,360
December 31, 2016		2,500
December 31, 2017		3,560

Other information:

1.		For each year presented, sales are $3,040 and operating expenses are $960.
.		Sunland provides two years of financial statements. Earnings per share information is not required. Prepare income statements reflecting the retrospective application of the accounting change from the LIFO method to the FIFO method for 2017 and 2016.

Prepare comparative retained earnings statements for 2016 and 2017 under FIFO.