Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 1, 2020, are available in Connect. This material is also available under the Investor Relations link at the company’s website (www.target.com).

Required:
1. Refer to Target’s financial statements for the year ended February 1, 2020. Note 8 provides information on Target’s inventories. What method does Target use to report most of its inventories?
2. If Target changed that method to another method, how would it account for the change?
3. Suppose that Target uses the FIFO costing method but decided to change to the LIFO method. How would it account for the change?