The §1231 Look-Back Rule Applies Whether There Is a Net

question 24

True/False

The §1231 look-back rule applies whether there is a net gain or loss.

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Definitions:

Inventory System

A mechanism for tracking the quantity, value, and movement of inventory through a business operation.

Periodic LIFO

An inventory valuation method applied at the end of an accounting period that assumes the last items added to inventory are the first sold.

Ending Inventory

The total value of unsold goods held by a company at the end of an accounting period.

Inventory System

Methods and procedures used to track materials, work-in-progress, and finished goods from acquisition through sale.