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.

---

Definitions:

Visual Aesthetics

Refers to the appealing appearance or design of something, particularly in art, design or web/graphic interfaces.

Worksheet Design

The layout and structure of a worksheet within software applications like Microsoft Excel, tailored for specific tasks.

Accounting Number Format

A style of formatting numbers in financial documents that aligns currency symbols and decimal points for easy comparison.

Floating Dollar Sign

A currency symbol that is placed immediately before the first digit of a number, used to indicate the currency, without being attached to the digits.