Practice Exercise 9-2 Sunland Company began operations in 2016 and determined its ending inventory at cost and at lower-of-LIFO-cost-or-market at December 31, 2016, and December 31, 2017. This information is presented below Lower-of-Cost-or- Market Cost December 31, 2016 December 31, 2017 December 31, 2018 $62,480 86,240 85,360 $76,560 88,000 85,360 Prepare the journal entries assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) is used. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 12/31/16 12/31/17 12/31/18 Prepare journal entries required at December 31, 2016, December 31, 2017 and December 31, 2018, assuming that the inventory is recorded at market under a perpetual system (loss method is used) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 12/31/16 12/31/17 12/31/18 Which of the two methods above provides the higher net income in each year