Carter Ltd. began operations on January 1, 2020. Merchandise purchases and four alternative methods of valuing inventory for the first two years of operations are summarized below. (Click the icon to view the information.) Required Which of the four methods listed above does not apply the matching principle? Briefly explain. b. Determine the cost flow assumption or inventory valuation method that would report the highest net income for 2020 Assuming that Firo had been used for both years, how much would be the cost of goods sold for 2021? a. c. match the revenue recognized in the period. Requirement a. Which of the four methods listed above does not apply the matching principle? Briefly explain The method does not apply the matching principle. Rather, it is a method to value the ending inventory. The amount of expense that would result Requirement b. Determine the cost flow assumption or inventory valuation method that would report the highest net income for 2020. Begin by computing the cost of goods sold for 2020 under each cost flow assumption or inventory valuation method (Enter a "U" for amounts with a zero balance) Specific Average Lower of Identification FIFO cost cost and market 2020 2021 925 000 S 800 000 $ 186,000 Purchases Ending inventory Specific identification First-in, first-out (FIFO) Average cost Lower of cost and market 170 000 190,000 205.000 194,000 174 000 176,000 150 000 Cost of goods sold Based on the previous calculations of cost of goods sold, the method would report the highest net income for 2020 Requirement c. Assurning that FIFO had been used for both years, how much would be the cost of goods sold for 2021? FIFO Cost of goods sold