At the end of its first year of operations, a company could calculate its ending inventory according to LO 4 Effect of Alternative Accounting Methods LO 4 Effect of Alternative LO 6 Accounting Methods three different accounting methods, as follows: FIFO, 95,000; weighted average-cost, 90,000 ; LIFO, 86,000 . If the company uses the weighted average-cost method, net profit for the year would be 34,000 .

1. Determine net profit if the FIFO method is used.

2. Determine net profit if the LIFO method is used.

3. Which method is more prudent?

4. Will the comparability criterion be violated if the company chooses to use the LIFO method?

5. Does the completeness criterion require disclosure of the inventory method selected by management in the financial statements?