Minnows Corporation began operations in 2014. At the beginning of the year, the company purchased plant assets of $1,800,000, with an estimated useful life of 10 years and no residual value. During the year, the company had net sales of $2,600,000, salaries expense of $400,000, and other expenses of $160,000, excluding depreciation. In addition, Minnows purchased inventory as follows.

Jan. 15 800 units at $400 $ 320,000

Mar. 20 400 units at $408 163,200

June 15 1,600 units at $416 665,600

Sept. 18 1,200 units at $412 494,400

Dec. 9 600 units at $420 252,000

Total 4,600 units $1,895,200

At the end of the year, a physical inventory disclosed 1,000 units still on hand. Minnows’s managers know they have a choice of accounting methods, but they are unsure how those methods will affect net income. They have heard of the FIFO and LIFO inventory methods and the straight-line and double-declining-balance depreciation methods.