Response to the following questions:
1. An art gallery purchases a painting for $11,400 on terms FOB shipping point. Additional costs in obtaining and offering the artwork for sale include $130 for transportation-in, $150 for import duties, $100 for insurance during shipment, $180 for advertising, $400 for framing, and $800 for office salaries. For computing inventory, what cost is assigned to the painting?
2. When costs are rising, which method reports higher net income-LIFO or FIFO?