Question: BBS Corporation has decided to change its inventory identification method. The corporation wishes to change from the specific identification method to the LIFO method. Are

BBS Corporation has decided to change its inventory identification method. The corporation wishes to change from the specific identification method to the LIFO method. Are there any special procedures that BBS must follow because of this change?

a) No, BBS does not need to notify anyone of this change.

b) Yes, BBS must notify its employees of this change prior to the end of the year.

c) Yes, BBS must file Form 970 with its corporate tax return for the year in which the LIFO

inventory method is first used.

d) Yes, BBS must recalculate this year's beginning inventory using the new method.

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