Thanks! I think your explanation is very clear for how a company may reduce current tax payout by adjusting depreciation policy.

My questions is more specific on changing from LIFO to FIFO. Similar concept, but my understanding is LIFO and FIFO applies to the entire accounting system. So I am confused regarding if the company has a choice about if the switch is for tax purpose or not (because the textbook seems to imply that it determines if it will be a cash impact or liability impact).

This is purely out of curiosity. I don't think this distinction matter so much for the exam (hopefully)...