17. Which of the following is true?

Both statements are false

Both statements are true

When adjusting inventory value down to net realizable value, the cost of goods sold method results in a lower gross profit number

When adjusting inventory value down to net realizable value, the loss method and cost of goods sold method result in different net income numbers

18.

The company had the following inventory at end-of-year prices: $1,230,000 in 2016 (base year), $1,345,000 in 2017, and $1,350,000 in 2018. The price index is 1.02 in 2017 and 1.03 in 2018. What is the LIFO effect in 2018? Round to the nearest whole number.

$1,320,400

$1,310,680

$1,313,100

$1,312,293