As of January 1, 2015, the company decided to change from the LIFO method of inventory valuation
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The ending income taxes payable-LIFO amount is not given because, in 2015, 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, 2013, after the change to FIFO is made.
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