Which statement concerning lower of cost or market (LCM) is incorrect? 1) LCM is applied after one of the cost flow assumptions has been applied. 2) LCM is an example of a company choosing the accounting method that will be least likely to overstate assets and income. 3) The LCM basis uses current replacement cost because a decline in this cost usually leads to a decline in the selling price of the inventory item. 4) Under the LCM basis, market does not apply because assets are always recorded and maintained at cost