Artic Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, 2010, purchases invoices during the year, an the inventory count at December 31, 2010, are summarized as follows: Determine the cost of the inventory on December 31, 2010, by the first-in first-out method. Present data in columnar form, using the following headings. If the inventory of a particular model comprises one entire purchase plus a portion of another purchase acquired at a different unit cost, use a separate line for each purchase. Determine the cost of inventory on December 31, 2010, by the last-in, first-out method, following the procedures indicated in (1). Determine the cost of inventory on December 31, 2010, by the average cost method, using the columnar headings indicated in (1). Discuss which method, using the (FIFO or LIFO) would be preferred for income tax purpose in periods of (a) rising prices and (b) declining prices