At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at $16 per unit:

Transactions	Units		Amount
Inventory, January 1	500		$	2,365
Purchase, January 12	600			3,600
Purchase, January 26	160			1,280
Sale	(370	)
Sale	(250	)

1. Between FIFO or LIFO, which method would result in the lower income tax expense? Assume a 30 percent average tax rate. (Round your answer to 2 decimal places.)

2. Between FIFO or LIFO, which method would produce the more favorable cash flow?