The code compiles and the output is 2 because the testFoo() method creates a new instance of the inner class A and calls the fubar() method with that instance. Since the inner class A implements the Foo interface and overrides the bar() method to return 2, the output will be 2. If lines 16, 17, and 18 were removed, the code would still compile and the output would be 2 because the inner class A would still be used. If lines 24, 25, and 26 were removed, the code would compile and the output would be 1 because the outer class A would be used, which returns 1 in the bar() method.