True or False? 1. The retail inventory method enables retail companies to approximate the inventory balance by accelerating the physical count. [Select] 2. GAAP requires companies to report inventories using the gross profit method every time a physical inventory count is not feasible. [Select] 3. Under limited circumstances, GAAP permits recording inventory at net realizable value, even if that amount is above cost. [Select] 4. In a lump-sum purchase, such as when companies purchase land to divide and sell, the common and most logical practice is to allocate the total among the various units on the basis of their relative sales value. [Select] 5. When applying the lower-of-cost-or-market rule, companies may have to use a designated market value that exceeds net realizable value. [Select] 6. Inventories should not be reported at amounts higher than the amount that is expected to be [Select] realized from sale or use.