A LIFO liquidation means which of the following:

		The firm uses the LIFO cost flow assumption, and it is insolvent. It must liquidate all of its inventory.
		The firm did not purchase enough inventory units in the current period to cover its sales for the current period. It must sell its older inventory units that were valued at a lower price. Thus, its gross profit will be higher than expected.
		The firm did not purchase enough inventory units in the current period to cover its sales for the current period. It must sell its older inventory units that were valued at a lower price. Thus, its gross profit will be lower than expected.
		The firm did not purchase enough inventory units in the current period to cover its sales for the current period. It must sell its older inventory units that were valued at a higher price. Thus, its gross profit will be higher than expected.
		None of these answers is correct.

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