ABC Inc., a start$-$up company which began operations in $2010,$ reports two years on the face of their financial statements and uses a tax rate of $30\%.$ In $2013,$ the company decided to change from LIFO to the FIFO inventory costing method. Below are the costs of goods sold values for each year under the two methods.

$6$A: Determine Net Income for $2013$ as it should be presented in the annual report.

$$248,500$

$$355,000$

$$357,000$

$$346,500$

$6$B: Which of the following would be included in the entry necessary to adjust the beginning retained earnings of $2013?$

Debit retained earnings

Credit retained earnings

Debit tax receivable

Credit inventory