1. Nova Ltd uses the last in, first out (LIFO) inventory method under periodic inventory system and had 5,000 units of beginning inventory on January 1, 2018, that was valued at $10.00 a unit. The company purchased 50,000 units at $12 a unit and sold 52,000 units at $15 a unit during the year before December. Nova is considering an additional purchase of 10,000 units at $13 a unit. The company will make the purchase either at the end of December or in the early part of year 2019. Suppose Nova only update their inventory record at the end of the year. Which statement about the effect of the purchase decision on net income is most accurate?

1. Making the purchase in December will increase income by $16,000 in year 2018.
2. Income for year 2018 will not be affected no matter when the inventory is purchased.
3. Making the purchase in December will increase cost of goods sold by $13,000
4. Postponing the purchase until January will increase income for 2018 by $14,000