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Which inventory method producess the lowest income tax during a period of inflation? A. LIFO B. FIFO c> Weighted-average
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Which inventory method producess the lowest income tax during a period of inflation? A. LIFO B. FIFO c> Weighted-average

User Rui Carvalho
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Hi there

The answer is
A. LIFO

the FIFO inventory costing method will produce a higher net income, and thus a higher tax liability, than the LIFO method

Hope it helps
User Myonara
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