The following is the lesson of the Thor Power Tool case:

Group of answer choices

If the taxpayer's method of valuing inventories is in accord with best financial accounting practices, it need not comply with the inventory valuation requirements of the Treasury regulations to clearly reflect income.

If the taxpayer's method of valuing inventories is in accord with best financial practices, it will automatically clearly reflect income in accord with Treasury policy.

If the taxpayer's method of valuing inventories is not in accord with best financial accounting practices, it clearly reflects income in accord with Treasury policy.

If the taxpayer's method of valuing inventories is in accord with best financial accounting practices, it must still comply with the inventory valuation requirements imposed by Treasury regulations to clearly reflect income.