1. For US Corporations that file tax returns with the Internal Revenue Service, which of the following statements is (are) true related to the LIFO Conformity Rule?

A. If a firm uses a LIFO inventory method for financial reporting purposes, the firm must use LIFO for income tax reporting purposes.

B. If a firm uses LIFO for income tax reporting purposes, the firm must use LIFO for financial reporting purposes.

C. Both Statements A and B are correct.

D. None of the above

2. On November 30, 2019, Downsizer Corporation, which follows US GAAP, decided to sell one of their segments. The segment has Net Assets with a book value of $ 45,000,000, and a buyer has been found who will pay Downsizer $ 52,000,000 on March 31, 2020.

Assuming that the transaction qualifies as a Discontinued Operation, which of the following items will be reflected in Downsizers financial statements for their fiscal year ending December 31, 2019?

A. There will be a Pre-Tax Gain in the amount of $ 7,000,000 which is reflected in Discontinued Operations on the Income Statement for the year ending December 31, 2019?

B. There will be a Current Asset (e.g. Net Assets of Discontinued Operations) in the amount of $ 52,000,000 on Downsizers Dec. 31, 2019 Balance Sheet.

C. Both A and B

D. None of the above.