37. The LIFO Conformity Rule states that (this is from my notes)

If a company uses LIFO for tax reporting purposes, it must also use LIFO for financial statement purposes.

If a company uses LIFO for inventory one year, it must use LIFO in each subsequent year.

If a company uses LIFO for financial statement purposes, it must also use it for tax reporting purposes.

None of these answers is correct.