Which of the following statements is correct?
A) The LIFO recapture tax is paid in five annual installments.
B) The LIFO recapture tax precludes an S corporation from using the LIFO method.
C) The LIFO recapture amount increases the corporation's adjusted basis in its inventory.
D) The LIFO recapture tax does not apply to S corporations with no earnings and profits from prior C corporation years.
E) None of the choices are correct.
Correct Answer:
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