(Learning Objective 3: Computing income and income tax effects of LIFO) Microdata.com uses the LIFO method to account for inventory. Microdata is having an unusually good year, with net income well above expectations. The company’s inventory costs are rising rapidly.

What can Microdata do immediately before the end of the year to decrease net income? Explain how this action decreases reported income, and also why Microdata might want to decrease its net income.