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This post addresses inventory valuation and net income.

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How does the choice of inventory valuation method affect the amount of net income reported by a company?

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The solution provides a detailed explanation discussing how the choice of inventory valuation methods affect the amount of net income reported by a company.

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The choice of inventory valuation method affects the company's net income due to how each method affects the cost of goods sold. If the company uses a first-in-first-out method and inventory costs are increasing, this will decrease the cost of goods sold because ...

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