In a period of inflation, the cost flow method that results in the lowest income taxes is the

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In a period of inflation, the LIFO (last-in, first-out) method results in the lowest income taxes because it assumes that the most recent (and presumably more expensive) inventory items are sold first, resulting in a higher cost of goods sold and a lower net income. This lower net income results in lower income taxes. However, it is important to note that LIFO may not accurately reflect the true cost of goods sold and may result in financial statement distortions.

In a Period of Inflation, the Cost Flow Method That