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Fahrenheit 451

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Inventory Costing - Rising Prices - Highest Income

FINACT-LR1OLP

Harper Electronics sells fan used for cooling is home computers. Harper assembles the fans and most of its sales are to companies that assemble computers for final sale to customers.

In a rising cost environment, which inventory cost flow method would lead to the highest reported net income for Harper?

A

FIFO

B

LIFO

C

Dollar-value LIFO

D

Weighted-average

E

Net income would be the same under any of the above listed methods.