Homework Answers
Answer= D) If a firm uses LIFO for tax purposes, then LIFO must be used for financial reporting purposes.
Explanation
Under current tax laws in the United States, a company which uses the LIFO method for tax purposes must use the LIFO method for financial reporting purposes. Which is know as LIFO conformity rule
The LIFO conformity rule states that if a company uses LIFO for tax purposes, it must also use it for financial reporting purposes
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