A retail company began operations late in $2012$ by purchasing $600,000/=$ of merchandise.There were no sales in $2012.$ During $2013$ additional merchandise of $3,000,000/=$ waspurchased. Operating expenses $($Excluding management bonuses$)$ are $400,000/=,$ and sales are$6,000,000/=.$ The management compensation agreement provides for incentive bonusestotaling $5\%$ of after$-$tax income $($after the bonuses$).$ Corporation tax rate is $35\%.$ The companyis undecided about the selection of the Last In First out $($LIFO$)$ OR First in first out $($FIFO$)$inventory methods. For the year ended $2013,$ ending inventory would be $700,000/=$ and$1,000,000/=,$ respectively under LIFO and FIFO.REQUIRED:$($I$)$ Evaluate management incentive to choose FIFO $(5$ marks$($II$)$ Evaluate management incentive to choose LIFO $(5$ marks$)$