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.
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