Ace Company began the current accounting period with 9,000 units of inventory purchased for $100 per unit. Ace sells its units at $300 per unit. Ace would experience a LIFO liquidation if:

Question

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A LIFO liquidation occurs when a company sells more units than it purchases during a period, causing the ending inventory to fall below the beginning inventory level, in this case, below 9,000 units.

Ace Company Began the Current Accounting Period with 9,000 Units