Nixon Wholesale Corp. uses the LIFO cost flow method. In the current year, profit at Nixon is running unusually high. The corporate tax rate is also high this year, but it is scheduled to decline significantly next year. In an effort to lower the current year's net income and to take advantage of the changing in sme tax rate, the president of Nixon Wholesale instructs the plant accountant to recommend to the purchasing department a large purchase of inventory for delivery 3 days before the end of the year. The price of the inventory to be purchased has doubled during the year, and the purchase will represent a major portion of the ending inventory value. Question 8 (1 point) Saved What is the effect of this transaction on the company's income statement this year and next year. This year: decrease net income. Next year: decrease net income This year: increase net income. Next year: increase net income This year: decrease net income. Next year: increase net income This year: increase net income. Next year: decrease net income. No effect on the income statement in either year