Emley Company has been using the LIFO method of inventory valuation for 10 years, since it began operations. Its 2014 ending inventory was $50,000, but it would have been $75,000 if FIFO had been used. Thus, if FIFO had been used, Emley's income before income taxes would have been

a. $25,000 greater over the 10-year period.

b. $25,000 less over the 10-year period.

c. $25,000 greater in 2014.

d. $25,000 less in 2014.

Given the historical cost of product Z is $40, the selling price of product Z is $50, costs to sell product Z are $6, the replacement cost for product Z is $41, and the normal profit margin is 40% of sales price, what is the market value that should be used in the lower-of-cost-or-market comparison?

a. $40.

b. $42.

c. $41.

d. $22.

Given the historical cost of product Dominoe is $22, the selling price of product Dominoe is $30, costs to sell product Dominoe are $5, the replacement cost for product Dominoe is $20, and the normal profit margin is 20% of sales price, what is the cost amount that should be used in the lower-of-cost-or-market comparison?

A. $25.

B. $20.

C. $19.

D. $22.