Question: During 2 0 2 4 , WW Incorporated reduced its LIFO eligible inventory quantities due to a problem with its major supplier. The effect of

During 2024, WW Incorporated 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 2024 net income would have been $30 million higher because inventory purchase prices were
declining.
its 2024 net income would have been $30 million lower because inventory purchase prices were
declining.
During 2024, WW Incorporated reduced its LIFO eligible inventory quantities due

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