jim8z3

jimmykaw Wrote:
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> Here is an example where the selling prices are
> increasing at the same rate as cost prices.
>
> Cost Prices-
> nov 08: 40
> dec 08: 50
>
> Selling Prices-
> Jan 09: 80
> Feb 09: 100
>
> FIFO-
> Jan Income: 80-40=40
> Feb Income: 100-50=50
>
> LIFO-
> Jan Income: 80-50=30
> Feb Income: 100-40=60
>
> So LIFO will always lead to lower taxes in rising
> prices.


Great illustration! Thanks!

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"good personality ... or he was known as Lt. Mandingo during his army days."