Lisle Inc. manufactures small appliances in three plants in the Southeast. Which of the following statements is true?

Multiple Choice

• 1.If Lisle uses LIFO to compute the cost of goods sold for tax purposes, it must use LIFO for financial statement purposes.

• 2. If Lisle uses FIFO to compute the cost of goods sold for tax purposes, it must use LIFO for financial statement purposes.

• 3.Lisle is not allowed to use LIFO to compute the cost of goods sold for tax purposes.

• 4.None of these statements are true.