Harley-Davidson manufactures motorcycles and accessories. Financial information from the 2012 annual report is excerpted as follows: Balance Sheet Information: Inventories, net (in thousands): 2012 Components at the lower of FIFO cost or market 2011 Raw materials and work in process $111,335 $113,932 Motorcycle finished goods 205,660 Part and accessories and general merchandise 226,261 122,418 121,340 Inventory at lower of FIFO cost or market 439,413 461,533 Excess of FIFO over LIFO cost (45,889) (43,527) $393,524 $418,006 Inventory obsolescence reserves deducted from FIFO cost were $22.9 million and $24.8 million as of December 31, 2012 and 2011, respectively REQUIRED: Why would a potential investor or creditor who is considering investing in Harley Davidson be inter ested in the difference between LIFO and FIFO inventory values? b. Explain why obsolete inventory is deducted from the carrying value of the asset. Harley Davidson's effective tax rate is 35 percent. Approximately how much more income tax would the company have paid if at the end of 2012 it switched to FIFO? d. Discuss why Harley Davidson might resist adopting IFRS. a c. ory levels