Armstrong Ltd. has used the average cost (AC) method to determine inventory values since the company was first formed in 20X3. In 20X7, the company decided to switch to the FIFO method, to conform to industry practice. Armstrong will still use average cost for tax purposes. The tax rate is 40%. The following data have been assembled:

	20X3				20X4				20X5				20X6				20X7
Net income, as reported, after tax	$	82,000	*		$	98,800	*		$	327,600	*		$	385,600	*		$	182,800	**
Closing inventory, AC		51,600				68,400				84,800				137,800				169,200
Closing inventory, FIFO		60,200				86,600				78,200				127,200				189,800
Dividends		7,600				10,600				10,600				14,600				20,600

*Using the old policy, average cost **Using the new policy, FIFO.

Required: Prepare the comparative retained earnings section of the statement of changes in shareholders equity for 20X7, reflecting the change in accounting policy.