For Income Tax Purposes, If the NRV of Inventory at Year

Multiple Choice

For income tax purposes, if the NRV of inventory at year end is lower than cost, the company is permitted:

A) a change in method which lowers the cost to less than the NRV.
B) a tax deductible expense for the amount of the loss.
C) a deferral of tax for the amount of the gain.
D) to use the specific identification method.