The Muhlstein Corporation began business on January 1. 2002. The following table shows information about inventories, as of December 31. for 3 consecutive years under different valuation methods. Assume that purchases are \($50.000\) each year. Using this information and assuming that the same method is used each year, you are to choose the phrase which best answers each of the questions that follow.

1. Which inventory basis would result in the highest net income for 2002?
2. Which inventory basis would result in the highest net income for 2003?
3. Which inventory basis would result in the lowest net income for the 3 years combined?
4. For the year 2003, how much higher or lower would net income be on the FIFO cost basis than on the lower-of-cost-or-market basis?

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2002 2003 2004 *FIFO cost, item-by-item valuation. Lower of LIFO FIFO Market Cost or Market* $10,200 $10,000 $9,600 $8,900 9,100 9,000 8,800 8,500 10,300 11,000 12,000 10,900