During $2021,$ WW Inc. reduced its LIFO eligible inventory quantities due to a problem with its major supplier. The effect of this liquidation was to increase its cost of goods sold by approximately $$40$ million. WW has a $25\%$ income tax rate. If WW had not experienced these supplier problems and the resulting liquidation:

Multiple Choice

Its $2021$ net income would have been $$30$ million lower because inventory purchase prices were rising.

Its $2021$ net income would have been $$30$ million higher because inventory purchase prices were declining.

Its $2021$ net income would have been $$30$ million higher because inventory purchase prices were rising.

Its $2021$ net income would have been $$30$ million lower because inventory purchase prices were declining.