Conceptual Question: On December 31, 2017, the end of its first year of operations, the management of the Busby Company is trying to decide whether to use the FIFO or LIFO method of measuring inventory. It determines that the LIFO method would produce the lower asset amount,

1. In what direction do you think prices have been moving during the year?

2. Which method would produce the higher cost of goods sold?

3. Which method would produce the higher net income for 2017?

4. Which method would produce the higher cost of goods available for sale for 2017?