Linden Corporation started operations on January 1, 2012, and has used the FIFO cost formula since its inception. In 2018, it decides to switch to the weighted average cost formula. You are provided with the following information.

Instructions
Answer the following, ignoring income tax considerations.
(a) What is the beginning retained earnings balance at January 1, 2014, if Linden prepares comparative financial statements starting in 2014?
(b) What is the beginning retained earnings balance at January 1, 2017, if Linden prepares comparative financial statements starting in 2017?
(c) What is the beginning retained earnings balance at January 1, 2018, if Linden prepares single-period financial statements for 2018?
(d) What is the net income reported by Linden in the 2017 income statement if it prepares comparative financial statements starting in 2015?

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Retained Earnings (Ending Balance) Net Income Under FIFO $100,000 70,000 90,000 120,000 300,000 305,000 Under Weighted Average Cost $92,000 65,000 85,000 130,000 293,000 310,900 Under FIFO 2012 2013 2014 2015 2016 2017 $100,000 160,000 235,000 340,000 590,000 780,000