A Company Using LIFO for Tax Purposes ________

Multiple Choice

A company using LIFO for tax purposes ________.

A) can use either LIFO or FIFO for financial reporting
B) must use LIFO for financial reporting
C) will have more taxes to pay with LIFO than FIFO in a period of rising inventory costs and stable inventory levels
D) will report higher net income with LIFO than FIFO in a period of rising inventory costs and stable inventory levels