During its first year of operations, Richmond Company, using a periodic inventory system, made undiscovered errors in taking its year end inventory that overstated Year 1 ending inventory by $150,000. The effect of these errors on reported income is: Select one: Year 1 Year 2 Understated Understated $150,000 $150,000 Year 1 Year 2 Overstated Not affected $150,000 C. Year 1 Year 2 Overstated Understated $150,000 $150,000 D. Year 1 Overstated $150,000 Year 2 Overstated $150,000 Question 2 Not yet answered Marked out of 2.00 P Flag question Assuming rising prices, which method will give the highest dollar value for cost of goods sold on the income statement? Select one: A. FIFO O B. Average Cost OC. LIFO D. All of these give equal values for cost of goods sold 3 Not yet answered Marted out of 200 Pago Humphrey Company uses the LIFO inventory costing method for both its tax reporting purposes and its financial reporting purposes. Humphrey's inventories are reported at $1,004 million on its balance sheet. In its footnotes, Humphrey Company is required to report the amount at which inventories would have been reported under FIFO method. The difference between these two numbers is commonly referred to as what? Select one: A LIFO liquidation B. LIFO holding gain O CLCM disclosures O D . LIFO reserve