In the Case of a Change from the Lower-Of-Cost-Or-Market FIFO

question 35

Multiple Choice

In the case of a change from the lower-of-cost-or-market FIFO to the LIFO inventory method:

• A)The taxpayer must value the beginning inventory to be the same as if the company had used the LIFO method for all the years the company was in business.
• B)The taxpayer must seek written permission from the IRS in order to make the change.
• C)The adjustment due to the change in accounting method must be spread over 3 years, the year of change and the two subsequent years.
• D)All of the above.
• E)None of the above.

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Definitions:

Tympanic Thermometer

A device used to measure body temperature quickly and accurately by detecting the infrared heat generated by the tympanic membrane of the ear.

Axillae

The anatomical area under the arms, known commonly as the armpits, which contains sweat glands and hair follicles.

Ice Pack

A portable bag filled with ice or gel used to provide cold therapy to injuries or reduce swelling.

Shivering

An involuntary body response causing rapid muscle contractions to generate warmth in response to cold.