Opal, Inc., is about to make its first attempt to borrow from a local bank. The company uses LIFO for tax purposes, solely to defer taxes, and it believes that income computed using the FIFO method would better reflect its income. The company also uses the double-declining balance method of depreciation for tax purposes, even though the straight-line method better reflects the actual depreciation. The company would like to present its financial position in the most favorable light. Therefore, Opal's CEO intends to provide the bank with an income statement prepared using the FIFO inventory method and straight-line depreciation. What problems will presenting the income statement to the bank in this fashion cause for Opal? The nonconformity of tax and financial reporting for depreciation | bank that is prepared using the FIFO inventory method O in the termination of the LIFO election. Opal ( purposes. Opal can disclose the FIFO earnings a problem. Presenting an income statement to the violate the conformity requirement and petition the IRS for an exception to allow FIFO for financial statement