Explain the relationship between these two accounts

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Question: Seneca's reasoning for making the change to LIFO is that it matches current costs with current revenues. Explain what is meant by this statement. Seneca states that pretax earnings were reduced by $28,165,000 using LIFO compared to FIFO.
Which specific account on the income statement contains the $28,165,000 difference? Which specific account on the balance sheet was also affected by the same amount? Explain the relationship between these two accounts.

Reference no: EM133433853

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