单选题 Premier Corp. ' s year-end last in, first out (LIFO) reserve was $ 2500000 in 2000 and $ 2300000 in 2001. Premier' s $ 200000 decline in the LIFO reserve could be explained by each of the following EXCEPT: A. declining inventory prices. B. a LIFO liquidation occurred. C. the LIFO reserve was being amortized.

【正确答案】 C

【答案解析】A decline in the LIFO reserve occurs when the increasing prices that created the reserve begin declining or when the inventory is liquidated ( i. e. less units in inventory at the end of the year than at the beginning). LIFO reserves are not amortized.