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5. Which of the following statements is incorrect? a. Under a periodic inventory system, cost of goods sold is recorded with each sale. b. Many companies rely on LIFO for tax and financial reporting purposes but on FIFO for internal purposes. In these cases, a LIFO reserve account is generally used. c. LIFO liquidation often leads to unexpected significant corporate income tax payments d. Dollar-value LIFO approach helps protecting LIFO layers from erosion. 6. Which of the following statements is correct? a. Net realizable value is the estimated selling price in the normal course of business less the normal profit margin b. Under the lower-of-cost-or-net realizable value (LCNRV) method, if the cost of an inventory is lower than the net realizable value, a loss will be recognized on the income statement c. The rationale for the "floor" in lower-of-cost-or-market (LCM) method is to prevent overstatement of the value of an inventory d. Under the lower-of-cost-or-market (LCM) method, if cost = $9, NRV = $10, replacement cost = $8, normal profit margin = $3, then inventory is valued at $7 7. Which of the following statements is incorrect? a Gross profit method assumes that goods not sold are in the hand of the company (i.e., they are inventory). b. Gross profit method first estimates the cost of goods sold and then estimate the value of ending inventory c. Gross profit method is normally unacceptable under GAAP, but it is useful for interim period reporting (e.g., 10, 20, 30 financial reporting). d. The primary objective of gross profit method is to estimate the value of ending inventory based on physical counting