Ace Company Began the Current Accounting Period with 9,000 Units

question 50

Multiple Choice

Ace Company began the current accounting period with 9,000 units of inventory purchased for $100 per unit. Ace sells its units at $300 per unit. Ace would experience a LIFO liquidation if:

• A)the sales price falls below $300 per unit.
• B)the purchase price falls below $100 per unit.
• C)the level of ending inventory falls below 9,000 units.
• D)any of the above scenarios happened.

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