All of the following are true with regard to the first-in, first-out inventory valuation method except:

All of the following are true with regard to the first-in, first-out inventory valuation method except:
A . It values inventory close to current replacement cost.
B . It generates the highest profit when prices are rising.
C . It approximates the physical flow of goods.
D . It minimizes current-period income taxes.

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Answer: D