In the country there is time of high inflation and the company would like to increase their cost of goods sold in order not to pay high taxes. 2 Points) The company would apply the First in first out method of inventory valuation as to increase ending inventory and thus increase the net operating income thus increasing profit to be taxable. The company would apply the Last in first out method of inventory valuation as to lower ending inventor and thus lower the net operating income thus lowering profit to be taxable. The company would apply the First in first out method of inventory valuation as to lower ending inventor and thus lower the net operating income thus lowering profit to be taxable