For tax purposes, LIFO inventories must be valued using the lower of cost or market valuation method.

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For tax purposes, LIFO (Last In, First Out) inventories can be valued using the LIFO method itself, which does not require the lower of cost or market valuation method. The lower of cost or market rule is a separate method used for inventory valuation under the GAAP (Generally Accepted Accounting Principles), not specifically tied to LIFO for tax purposes.

For Tax Purposes, LIFO Inventories Must Be Valued Using the Lower