The management of Eckel Corp. is considering the effects of various inventory costing methods on its financial statements and its income tax expense. Assuming that the price the company pays for inventory is increasing, which method will:
(a) Provide the highest net income?
(b) Provide the highest ending inventory?
(c) Result in the lowest income tax expense?
(d) Result in the most stable earnings over a number of years?

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April 21, 2012

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