Newhuman

grumble Wrote:
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> You subtract the change in the LIFO reserve *(1-t)
> to = FIFO net income. This is important to
> remember! When prices are rising, FIFO NI > LIFO
> NI.


Are you sure?
If prices are rising and inventory stable or rising LIFO reserve will rise as well. If you subtract (change in the LIFO reserve *(1-t)) from LIFO income you will get FIFO NI < LIFO NI not as you stated.