Dutch Truck Sales sells semitrailers. The current inventory includes the following five semitrailers (identical except for paint color) along with purchase dates and costs:

On May 20, 2011, a trucking firm purchased semitrailer 3 from Dutch for $86,000.
1. Compute the gross margin on this sale assuming Dutch uses:
(a) FIFO inventory method
(b) LIFO inventory method
(c) Specific identification method
2. Which inventory method do you think Dutch should use?Why?

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Semitrailer Purchase Date Cost April 3, 201I April 10, 2011 April 10, 201II May 4, 201I May 12. 201I $73,000 70,000 71,000 77,000 78,500