Dover Company began operations in 2017 and determined its ending inventory at cost and at NRV at December 31, 2014, and December 31, 2015, December 31, 2016. This information is presented below

Cost Net Realizable Value

12/31/14 $255,000 $248,000

12/31/15 $225,000 $214,000

12/31/16 $231,000 $252,000

a) Prepare the journal entries required at December 31, 2014, and December 31, 2015 and December 31, 2016 using a contra-asset account, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method

b) Prepare journal entries required at December 31, 2014, and December 31, 2015, and December 2016 using a contra-asset account, assuming inventory is recorded at LCNRV and a perpetual system using the loss method

c) Which of the two methods provides a higher net income?