For the purpose of delaying income taxes, during an inflationary period, which method would be best?
A) LIFO.
B) FIFO.
C) Average.
D) Taxes would be the same under each assumption.

Question

Quizplus · Accepted Answer

During an inflationary period, using the LIFO (Last In, First Out) method results in higher cost of goods sold and lower taxable income, thus delaying income taxes.

For the Purpose of Delaying Income Taxes, During an Inflationary