accounting

Taveras Co. decides at the beginning of 2014 to adopt the FIFO method of inventory valuation. Taveras had used the LIFO method for financial reporting since its inception on January 1, 2012, and had maintained records adequate to apply the FIFO method retrospectively. Taveras concluded that FIFO is the preferable inventory method because it reflects the current cost of inventory on the balance sheet. The table presents the effects of the change in accounting principle on inventory and cost of goods sold.

		Inventory Determined by				Cost of Goods Sold Determined by
Date		LIFO Method		FIFO Method		LIFO Method		FIFO Method
January 1, 2012		$ 0		$ 0		$ 0		$ 0
December 31, 2012		102		84		783		801
December 31, 2013		202		242		1,004		946
December 31, 2014		330		404		1,136		1,102

Retained earnings reported under LIFO are as follows.

		Retained Earnings Balance
December 31, 2012		$2,609
December 31, 2013		4,997
December 31, 2014		7,253

Other information:

1.		For each year presented, sales are $4,394 and operating expenses are $1,002.
2.		Taveras provides two years of financial statements. Earnings per share information is not required.

Prepare income statements under LIFO for 2012, 2013, and 2014.

TAVERAS CO. Income Statement For the Year Ended December 31
LIFO
		2012		2013		2014
		$						$		$						$		$						$		$:				$:				$