Compare income and income tax effects of LIFO
Response to the following problem:
Univision.com uses the LIFO method to account for inventory. Univision is having an unusually good year, with net income well above expectations. The company's inventory costs are rising rapidly. What can Univision do immediately before the end of the year to decrease net income? Explain how this action decreases reported income, and tell why Univision might want to decrease its net income.