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.

$$

$$

Cost

$$

Lower$-$of$-$Cost$-$or$-$Market

$12/31/19$

$$

$$356,000$

$$

$$327,000$

$12/31/20$

$$

$420,000$

$$

$395,000$

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?