Gain B3-INVENTORY CHOICE AND FINANCIAL REPORTING (9 points, 3 points each) Answer the following questions related to the accounting for inventory and the impact on your financial reporting. 1) Inventory costs are decreasing. Which inventory cost flow assumption method would result in the highest net income, and why? 2) Suppose your ending inventory count was overstated in Year 1. What is the impact on your Cost of Goods Sold during Year 2, assuming that the ending inventory count during Year 2 is accurate? Explain. 3) Your intern has taken Introductory Financial Accounting and he tells you that "specific identification" is the best inventory cost flow assumption method because it is the most "accurate". Comment on his statement, including what are the benefits and limitations of "specific identification