The Crevier Corporation began business on January 1, 2011. The following table shows information about inventories, as of December 31, for three consecutive years under different valuation methods. Assume that purchases are $60,000 each year. Using this information and assuming that the same method is used each year, you are to answer each of the questions that follow.

1. Which inventory basis would result in the highest net income for 2011?
2. Which inventory basis would result in the highest net income for 2012?
3. Which inventory basis would result in the lowest net income for the three years combined?
4. For the year 2012, how much higher or lower would net income be on the FIFO cost basis than on the lower-of-cost-or-marketbasis?

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Lower of LIFO FIFO Market Cost or Market* 2011 2012 2013 FIFO cost, item-by-item valuation. $14,500 11,500 12900 $12300 $15,100 $14,800 8,800 10,400 11.600 11600 13.400 3.000