(the choice of the method did not play a role yet)

The value of COGS calculated using the FIFO method was $ 1750 while that calculated using the LIFO method was $ 2750.

The value of inventory calculated using the FIFO method was $ 2750 while that calculated using the LIFO method was $ 1750.

This reserve is essentially the amount by which the tax has been deferred by when using the LIFO method.

This reserve is essentially the amount by which an entity’s taxable income has been deferred by using the LIFO method.

It is the amount by which a company’s taxable income has been deferred by using the LIFO method.

This reserve is essentially the amount by which an entity's taxable income has been deferred by using the LIFO method.

This reserve is essentially the amount by which an entity's taxable income has been deferred by using the LIFO method.[2]

This reserve is basically the quantity by which an entity’s gross income has actually been delayed by utilizing the LIFO technique.

The LIFO reserve is the amount by which a company’s taxable income has been deferred, as compared to the FIFO method.

Hence, whether you use the LIFO method or FIFO method, the value of the inventory expensed or even that in stock will also come out to be exactly the same in any case.

On the other hand, a company that uses the LIFO method will be reporting a lower value of net worth and hence will appear comparatively less attractive to the investors.

Prepare the IS and BS of Joe's business with the LIFO-method figure for the ending stock we just computed.

On the other hand, a company that uses the LIFO method will be reporting a lower value of net worth and hence will appear comparatively less attractive to the investors.

The benefits of using the LIFO method are that it is helpful in deferring tax and lowering inventory write-downs during periods of high inflation.