A company uses LIFO. Its ending inventory is much lower than its beginning inventory for the year. Which of the following would likely be true?

a.The company would be liquidating LIFO layers, resulting in higher gross profits but only if there was inflation during the years inventory had been purchased.

B.The company would be liquidating LIFO layers, resulting in higher gross profits but only if there was deflation during the years inventory had been purchased.

c. The company would be liquidating LIFO layers, resulting in lower gross profits but only if there was deflation during the years inventory had been purchased.

D. a and c