Crane Co. decides at the beginning of 2020 to adopt the FIFO method of inventory valuation. Crane had used the LIFO method for financial reporting since its inception on January 1, 2018, and had maintained records adequate to apply the FIFO method retrospectively. Crane concluded that FIFO is the preferable inventory method because it reflects the current cost of inventory on the balance sheet. The following table presents the effects of the change in accounting principles on inventory and cost of goods sold. Income taxes are ignored. Inventory Determined by Cost of Goods Sold Determined by Date LIFO Method FIFO Method LIFO Method FIFO Method January 1, 2018 $0 $0 $0 $0 December 31, 2018 100 8 730 822 December 31, 2019 200 230 910 788 December 31, 2020 290 380 1,010 950 Retained earnings reported under LIFO are as follows. Retained Earnings Balance December 31, 2018 $1,470 December 31, 2019 2,760 December 31, 2020 3,950 Other information: 1. For each year presented, sales are $3,230 and operating expenses are $1,030. 2. Crane provides two years of financial statements. Earnings per share information is not required. Prepare income statements under LIFO for 2018, 2019, and 2020. Sales 3230 Cost of Goods Sold 730 i Operating Expenses 1030 i Net Income /(Loss) $ 1470 Prepare income statements under FIFO for 2018, 2019, and 2020. Sales Cost of Goods Sold Operating Expenses Net Income /(Loss) $ $ CRANE CO. Income Statement For the Year Ended December 31 LIFO 2019 2018 2018 3230 822 i i 1378 $ CRANE CO. Income Statement For the Year Ended December 31 FIFO 2019 1030 $ 69 $ 1A 3230 910 1030 1290 3230 788 1030 1412 $ $ $ 2020 2020 1010 1030 950 1030 Prepare income statements reflecting the retrospective application of the accounting change from the LIFO method to the FIFO method for 2020 and 2019. CRANE CO. Income Statement For the Year Ended December 31 2019 2020 Sales $ 3230 $ Cost of Goods Sold Operating Expenses Net Income /(Loss) ? $ 788 1030 1412 3230 950 i 1030 1250 Prepare comparative retained earnings statements for 2019 and 2020 under FIFO. $ $ 2019 I $ $ 10