1. According to the IRS, how is the LIFO recapture tax computed? List the steps that must be followed in computing the tax.

2. According to the IRS, on which form or forms is the LIFO recapture tax reported and paid each year? Describe specifically how and where it is reported on each form.

Please answer each question in complete sentences, and cite the name and number of the IRS publication or form/instruction where you found each answer, and the page number on which the answer is found. Use your own words in the answer do not copy the IRS language