With the assumption of costs and prices generally rising, whichof the following is correct?

1.FIFO provides the closest cost of goods sold to replacementcost.

2.LIFO provides the closest valuation of inventory on thebalance sheet to replacement cost.

3.Specific identification method provides the closest cost ofgoods sold to replacement cost on the income statement.

4.LIFO provides the closest valuation of cost of goods sold toreplacement cost of inventory sold.

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