During 2018, WW Inc. reduced its LIFO eligible inventory quantities due to a problem with its major supplier. The effect of this liquidation was to increase its cost of goods sold by approximately $50 million. WW has a 40% income tax rate. If WW had not experienced these supplier problems and the resulting liquidation
A.Its 2018 Net Income would have been $30 million lower b/c inventory purchase prices were rising.
B.It`s 2018, Net income would have been $30 million lower b/c inventory purchase prices were declining.
C its 2018,Net income would have been $30 million higher because inventory purchase prices were rising.
D.its 2018, Net income would have been $30 million higher b/c inventory purchase prices were declining.
