Max purchased 100 shares of investment X in his taxable portfolio every year for three years. In year 1 he purchased 100 shares of X at $10 per share. In year 2 the price had risen to $20 per share so he bought 100 shares at $20 per share. Finally, in year 3 the price had risen again and he purchased 100 shares of X at $30 per share. Max would now like to sell 100 shares while the price is $25 per share.

Which of these IRS-approved share identification methods would minimize income taxes?

A)

first-in, first-out

B)

specific identification

C)

last-in, first-out

D)

average cost