P is a computer dealer. From the information in Table 16.5:

(a) compute the income statements and closing balance sheets for each of the years 20X0 and 20X1 under historical cost principles, assuming FIFO;

(b) construct the income statements and closing balance sheets for each of the years 20X0 and 20X1 under current replacement cost principles;

(c) comment briefly on the significance of a comparison of the results.