LIFO Inventory Management and the ACE Component of the Alternative Minimum Tax.
研究了1990年替代性最低税负的调整后当前收益部分如何降低使用后进先出法的税收优惠，并探讨了对企业选择库存方法和管理决策的影响。
Abstract Changes in acceptable accounting rules make it imperative for managers to reevaluate the possibly subtle costs and benefits of alternative accounting methods. The 1990 introduction of the adjusted current earnings (ACE) component of the alternative mini- mum tax (AMT) is such a rule change. Firms subject to the ACE component of the AMT receive a much smaller tax benefit from using LIFO than firms subject to the regular tax. During periods of rising costs and stable or increasing inventory levels, LIFO produces lower income and lower tax liability relative to FIFO. Under the regular tax, a firm that chooses LIFO saves up to 35 percent of the current increase in the difference between FIFO and LIFO inventory values. Because of the "LIFO adjustment" to ACE, an AMT firm saves as little as five percent of this increase. The purposes of this paper are to demonstrate the reduced tax benefits of LIFO when a firm is subject to the AMT and to illustrate some of the managerial implications of these reduced tax benefits. Examples in this article address the issue of whether a new firm should adopt LIFO, and whether an existing firm should liquidate its LIFO layers.