With the assumption of costs and prices generally rising, which of the following is correct? LIFO provides the closest valuation of inventory on the balance sheet to replacement cost. Specific identification method provides the closest cost of goods sold to replacement cost on the income statement. FIFO provides the closest cost of goods sold to replacement cost. LIFO provides the closest valuation of cost of goods sold to replacement cost of inventory sold.

With the assumption of costs and prices generally rising, which of the following is correct?
     LIFO provides the closest valuation of inventory on the balance sheet to replacement cost.
     Specific identification method provides the closest cost of goods sold to replacement cost on the income statement.
     FIFO provides the closest cost of goods sold to replacement cost.
     LIFO provides the closest valuation of cost of goods sold to replacement cost of inventory sold.

                                        

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