Discussion: LIFO elimination
1) Assume that in an effort to be consistent with the international accounting standards, FASB decides to eliminate LIFO for financial reporting. Discuss the complicating factors associated with eliminating LIFO (including comparability of gross margins over time and tax issues). If you were the CFO of a company that uses LIFO how would you lobby FASB on the implementation of LIFO elimination, assuming that the elimination is unavoidable. Write your response in a 2-3 page write-up.
2) Using the 2014 10-K of Graybar Electric Company Inc., explain what might have caused the change in the deferred tax asset associated with inventory and how the change would have affected taxes paid. Refer to numbers in the inventory and income taxes footnotes to explain this in not more than 1 page
This is full group project questions but I only need an answer for the 2nd question.
Attachment:- Graybar-2014-10K.pdf