"inventories are recorded using LIFO (last-in-first-out) method of accounting). In addition, for tax purposes some expenses must be capitalized using the UNICAP rules. In the last fiscal year, $200,000 were capitalized for tax; in the current fiscal year, UNICAP mounted to $275,000. Assume that all inventory turns over more than once per year."

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Inventories are recorded using the LIFO lastinfirstout ... View the full answer