The following statements about LIFO inventory are false except: The taxpayer needs IRS permission to

The following statements about LIFO inventory are false except: The taxpayer needs IRS permission to adopt LIFO. LIFO must be used for both “book” and tax purposes, but the numbers may still differ. The use of LIFO results in tax deferral and increased earnings per share per books. A layer of LIFO inventory is added every year.