The controller of Alt Company is applying the lower-of-cost-or-net realizable value basis of valuing its ending inventory. The following information is available:

CostNet Realizable

ValueLawnmowers:Self-propelled$14,800$17,000Push type19,00018,000Total33,80035,000Snowblowers:Manual29,80031,000Self-start19,00021,000Total48,80052,000Total inventory$82,600$87,000

Compute the value of the ending inventory by applying the lower-of-cost-or-NRV.Show your work.

Question 3: The management of Svetlana Corp. is considering the effects of inventory-costing methods on its financial statements and its income tax expense. Assuming that the price the company pays for inventory is increasing, which method will:

a. Provide the highest net income, LIFO or FIFO?

b. Provide the highest ending inventory, LIFO or FIFO?

c. Result in the lowest income tax expense, LIFO or FIFO?