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

question 11

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 these.
• E)None of these.

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