What happens when prices are falling?
A. LIFO will result in higher net income and a lower inventory valuation than will FIFO.
B. LIFO will result in higher net income and a higher inventory valuation than will FIFO.
C. LIFO will result in lower net income and a lower inventory valuation than will FIFO.
D. LIFO will result in lower net income and a higher inventory valuation than will FIFO.
Answer: B
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