If legally allowed,during periods of rising inventory values,a retailer using the FIFO (first-in-first-out)method could reduce its tax liability by _____.

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By switching to LIFO (last-in-first-out), the retailer can match the most recent and expensive inventory purchases with revenues, leading to a lower taxable income and thus reducing tax liability. This is because LIFO assumes that the most recently acquired inventory items are the first to be sold, resulting in a higher cost of goods sold and lower net income for tax purposes.

If Legally Allowed,during Periods of Rising Inventory Values,a Retailer Using