Firm A and B had identical merchandising operations (bought and sold inventory at the same times and prices) in 2022 but firm A reported higher income than firm B in 2022 Firm A used FIFO perpetual and Firm B used FIFO periodic If prices were rising during the period, Firm A used LIFO periodic and Firm B used FIFO periodic Firm B prepaid for inventory If prices were rising during the period. Firm A used FIFO and Firm B used LIFO Firm A did not pay for the inventory