(4) LIFO inventory adjustments (A) In general Earnings and profits shall be increased or decreased by the amount of any increase or decrease in the LIFO recapture amount as of the close of each taxable year; except that any decrease below the LIFO recapture amount as of the close of the taxable year preceding the 1st taxable year to which this paragraph applies to the taxpayer shall be taken into account only to the extent provided in regulations prescribed by the Secretary. (B) LIFO recapture amount For purposes of this paragraph, the term “LIFO recapture amount” means the amount (if any) by which— (i) the inventory amount of the inventory assets under the first-in, first-out method authorized by section 471, exceeds (ii) the inventory amount of such assets under the LIFO method. (C) Definitions For purposes of this paragraph— (i) LIFO method The term “LIFO method” means the method authorized by section 472 (relating to last-in, first-out inventories). (ii) Inventory assets The term “inventory assets” means stock in trade of the corporation, or other property of a kind which would properly be included in the inventory of the corporation if on hand at the close of the taxable year. (iii) Inventory amount The inventory amount of assets under the first-in, first-out method authorized by section 471 shall be determined— (I) if the corporation uses the retail method of valuing inventories under section 472, by using such method, or (II) if subclause (I) does not apply, by using cost or market, whichever is lower.