Fte Following Statements About Inventories for Tax Purposes Are All

fte following statements about inventories for tax purposes are all true, except:

A) Inventories may not be valued on the basis of the "base stock" method, the prime cost method, nor the variable cost method.
B) If inventories are required to be kept, the taxpayer must be on the accrual basis for purchases and sales of inventory, but it may be on the cash method for the service portion of the business.
C) fte use of the LIFO method invariably results in an annual reduction in taxable income.
D) A strict adherence to GAAP is no guarantee that the IRS will allow a write-down of inventories.