E$9\mathrm{.}8($LO $2)($Lower$-$of$-$Cost$-$or$-$Market$-$Journal Entries$)$ Corrs Company began operations in $2019$ and determined its ending inventory at cost and at lower$-$of$-$LIFO cost$-$or$-$market at December $31,2019,$ and December $31,2020.$ This information is presented below.

$\backslash$table$[[,$Cost,Lower$-$of$-$Cost$-$or$-$Market$],[\frac{12}{31}\frac{?}{19},$$$356,000,],[\frac{12}{31}\frac{?}{20},420,000,]]$

Instructions

a$.$ Prepare the journal entries required at December $31,2019,$ and December $31,2020,$ assuming that the inventory is recorded at market, and a perpetual inventory system $($cost$-$of$-$goods$-$sold method$)$ is used.

b$.$ Prepare journal entries required at December $31,2019,$ and December $31,2020,$ assuming that the inventory is recorded at market under a perpetual system $($loss method is used$).$

c$.$ Which of the two methods above provides the higher net income in each year?