Computer Company is considering either FIFO or LIFO. Determine which method results in the lowest income tax expense in the current year when (a) inventory costs are rising and (b) inventory costs are falling. The income tax rate is 20%, and is calculated as a percentage of net income. a. When inventory costs are rising, income tax expense in the current year is lowest using: b. When inventory costs are falling, income tax expense in the current year is lowest using: Method

Computer Company is considering either FIFO or LIFO. Determine which method results in the lowest income tax expense in the current year when (a) inventory costs are rising and (b) inventory costs are falling. The income tax rate is 20%, and is calculated as a percentage of net income