A. Balance sheet effects: the inventory costs are closer to current costs under FIFO than under LIFO.
b. Income statement effects: in addition to the effects on net income in (13) above, LIFO enables the company to avoid reporting paper or phantom profit as economic gain.
c. Tax effects: in a period of inflation LIFO results in the lowest income taxes.

Which method do you prefer in term of showing higher net income? why

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In view of the data gave A Balance sheet effects FIFO Earliest in earliest out technique regularly b... View the full answer