Tulip Company decided to change from LIFO to FIFO inventory costing, effective January 1, 2020. The following data were available: Year 2020 Pretax Operating Income using LIFO Excess of FIFO Ending Inventory over LIFO Ending Inventory $40,000 $8,000 2019 2018 20,000 30,000 7,000 4,000 The income tax rate is 35%. The company began operations on January 1, 2018, and has paid no dividends since inception Required: Answer the following questions relating to the 2019-2020 comparative financial statements a. What is net income for 2020? b. What is restated net income for 2019? c. Prepare the 2019 statement of retained earnings as it would appear in the comparative 2019-2020 financial statements Th a. What is net income for 2020? Points: $20,800 X 0/1 b. What is restated net income for 2019? Points: $14,950 1/1 c. Prepare the 2019 statement of retained earnings as it would appear in the comparative 2019-2020 financial statements Retained Earnings Instructions Tulip Company Statement of Retained Earnings For the Year Ended December 31, 2019 Score: 43/51 January 1, 2019, retained earnings as reported (using LIFO) $14,050.00 2 Add: Adjustment for accounting change from LIFO to FIFO (net of tax) 8,050.00 5 January 1, 2019, retained earnings (restated) $22,100.00 Add: 2019 net income (restated) 5 December 31, 2019, retained earnings (restated) 14,950.00 $37,050.00