As of January 1, 2013, the company decided to change from the LIFO method of inventory valuation to the FIFO method. The change is being made for both book and tax purposes. Data for the past four years (including 2013) are as follows:

The ending income taxes payable-LIFO amount is not given because, in 2013, income taxes payable will be computed using the newly adopted FIFO numbers. As you can see from the prior years, it is the practice of the company to pay all income taxes in the subsequent year.
The company's income tax rate is 40%, and the company has no expenses except for cost of goods sold and income tax expense. Compute the retrospectively recalculated Retained Earnings balance as of January 1, 2011, after the change to FIFO is made.

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$1,000 600 100 160 $2,000 $1,500 Cost of goods sold-LIFO Ending inventory LIFO Ending income taxes payable-LIFO Ending retained earnings LIFO Cost of goods sold-FIFO Ending inventory FIFO 200 n/a 1,668 1,170 300 $1,200 720 120 192 828 710 170 150 240 880 595 220 140