A corporation issues quarterly interim financial statements and uses the lower cost or net realizable value to value its inventory in its annual financial statements. Which of the following statements is correct regarding how the corporation should value its inventory in its interim financial statements?

Group of answer choices

Inventory losses generally should be recognized in the interim statements.

Temporary market declines should be recognized in the interim statements.

Only the cost method of valuation should be used.

Gains from valuations in previous interim periods should be fully recognized.