Unformatted text preview: liability on all the companies. President Obama stated that this new proposal could create more jobs within the manufacturing industry. Companies will not be able to use the cost of the most recent goods, but instead would have to use the cost of the oldest goods through the inventory and tax liability. The company’s profit will decrease because the price of selling the items will not be as large. If the companies had to switch from LIFO to FIFO then each would have to go back through their inventory and recalculate. Reference Pear, R. (2011, July 12). Rush to Defend Tax Rule on Inventory and Profits. The New York Times . Retrieved from http://www.nytimes.com/2011/07/13/us/politics/13tax.html?_r=4...
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- Fall '10
- Accounting, Taxation in the United States, President Obama