Vaughn Company began operations on July 1, 2015, and has used the average-cost method of inventory valuation since its inception. In 2019, it decides to switch to the FIFO method. You are provided with the following information: Net Income Retained Earnings (Ending Balance) Under Average Cost Under Average-Cost Under FIFO 2015 $52,000 $57,000 $57,000 2016 126,000 136,000 173,000 2017 159,000 184,000 319,000 2018 115,000 120,000 398,000 (a) What is the beginning retained earnings balance at January 1, 2016, if Vaughn prepares comparative financial statements starting in 2018? Retained earnings, January 1 $ $ (b) What is the beginning retained earnings balance at January 1, 2018, if Vaughn prepares comparative financial statements starting in 2018? Retained earnings, January 1 $ (c) What is the beginning retained earnings balance at January 1, 2019, if Vaughn prepares comparative financial statements starting in 2019? Retained earnings, January 1 $ (d) What is the net income reported by Vaughn in the 2018 income statement if it prepares comparative financial statements starting with 2016? Net Income $ e Textbook and Media Save for Later Attempts: 0 of 3 used Submit