2.7. Which inventory valuation method, FIFO or LIFO, will generally produce an ending inventory value on the balance sheet that is closest to current cost? 2.8. Discuss the difference between the straight-line method of depreciation and the acceler- ated methods. Why do companies use different depreciation methods for tax reporting and financial reporting? 2.9. What is the purpose of listing the account "Commitments and contingencies" on the bal- ance sheet even though no dollar amounts appear? 2.10. How is it possible for a company with positive retained earnings to be unable to pay a cash dividend? 2.11. The King Corporation has total annual revenue of $800,000; expenses other than depre- ciation of $350,000; depreciation expense of $200,000 for tax purposes; and depreciation expense of $130,000 for reporting purposes. The tax rate is 34%. Calculate net income for reporting purposes and for tax purposes. What is the deferred tax liability? 2.12. Explain how treasury stock affects the stockholders' equity section of the balance shee and the calculation of earnings per share. Technologies consolidated