a. In each dropdown that follows, select the correct sign [less than ( ), or equal (=)] for each comparison, assuming periods of rising prices. 1. FIFO inventory 2. FIFO cost of merchandise sold LIFO inventory 3 LIFO cost of merchandise sold 3. FIFO net income 4. FIFO income taxes LIFO net income LIFO income taxes b. Why would management prefer to use LIFO over FIFO in periods of rising prices? 1. The income shown on the company's tax return would be lower if LIFO rather than FIFO were used; thus, there is a tax advantage of using LIFO. 2. The inventory value would be lower if LIFO rather than FIFO were used; thus, there is a tax advantage of using LIFO. 3. The income shown on the company's tax return would be higher if LIFO rather than FIFO were used; thus giving a better dividend to the shareholders.