Linden Corporation started operations on January 1, 2015, and has used the FIFO cost formula since its inception. In 2024, it decides to switch to the weighted average cost formula. You are provided with the following information.

InstructionsAnswer the following, ignoring income tax considerations.

a. What is the beginning retained earnings balance at January 1, 2020, if Linden prepares comparative financial statements starting in 2020?

b. What is the beginning retained earnings balance at January 1, 2023, if Linden prepares comparative financial statements starting in 2023?

c. What is the beginning retained earnings balance at January 1, 2024, if Linden prepares single-period financial statements for 2024?

d. What is the net income reported by Linden in the 2023 income statement if it prepares comparative financial statements starting in 2021?

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2018 2019 2020 2021 2022 2023 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 Retained Earnings (Ending Balance) Under FIFO $100,000 160,000 235,000 340,000 590,000 780,000