Brief exercise 8-9 lifo method [lo8-4] aaa hardware uses the lifo method to value its inventory. inventory at the beginning of the year consisted of 16,000 units of the company’s one product. these units cost $10 each. during the year, 66,000 units were purchased at a cost of $13 each and 67,000 units were sold. near the end of the fiscal year, management is considering the purchase of an additional 8,000 units at $13. required: 1. what would be the effect of this purchase on income before income taxes? 2. what would be the effect of this purchase on income before income taxes using fifo method?

1. which one of the following would be an example of a supply-side market failure? a. a gas station is slowly leaking diesel fuel from its underground tanks, and after the leak is discovered, the business immediately cleans up the pollution at its own expense. b. a gas station is slowly leaking diesel fuel from its underground tanks, but the state uses taxpayer money to clean up the pollution rather than requiring the business to pay. c. your business wants to attract repeat customers by putting on a customer-appreciation picnic at a public park, but you decide not to because you couldn't prevent noncustomers from consuming the food and entertainment you provided. d. everyone rushes to the local retail outlet at midnight on the day of the release of a new video game console, and the store runs out before everyone is able to buy one.