Case Information: Twenty-Four Seven began operations at the beginning of the current year by issuing 100,000 common shares for $15.4 par value. In early January, the company purchased equipment costing $175,000 that had a 10-year estimated useful life and a $10,000 residual value. The management is confused whether to use the straight line or the double declining balance methods of depreciation; given that the company needs to maximize the income for reporting purposes. Moreover, the company made inventory purchases of $926,000 during the year, as follows: 1,500 units $120.00 = $180,000 January July 3,000 November 2,000 Totals 142.00 426,000 160.00 320,000 6,500 $926,000 Sales for the year are 6,000 units for $1,800,000 of revenue. Expenses other than cost of goods sold and income taxes total $425,000. The management of the company is undecided about whether to adopt the FIFO method or the weighted-average-cost method for inventories. The company uses the periodic inventory system. The income tax rate is 25%.