jane owns a business that resells machines. at the start of 2009, she has no machines or parts on hand. she buys machines a and b for 10 each, and later buys machines c and d for 12 each. all the machines are the same, but they have serial numbers. jane sells machines a and c for 20 each. her cost of goods sold depends on her inventory method. under specific identification, the cost of goods sold is 10 + 12, the particular costs of machines a and c. if she uses fifo, her costs are 20 (10+10). if she uses average cost, her costs are 22 ( (10+10+12+12)/4 x 2). if she uses lifo, her costs are 24 (12+12). thus, her profit for accounting and tax purposes may be 20, 18, or 16, depending on her inventory method. after the sales, her inventory values are either 20, 22 or 24.