At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at $$17\mathrm{.}40$ per unit:TransactionsUnitsAmountInventory, January $1620$$$3,255$Purchase, January $126004,200$Purchase, January $261501,350$Sale$(480)$ Sale$(200)$ Required:$1$a$.$ Assuming the use of a periodic inventory system, compute Cost of Goods Sold under each method of inventory: average cost, FIFO, LIFO, and specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January $12$ purchase$\mathrm{.}1$b$.$ Assuming the use of a periodic inventory system, prepare a partial income statement under each method of inventory: $($a$)$ average cost, $($b$)$ FIFO, $($c$)$ LIFO, and $($d$)$ specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January $12$ purchase$\mathrm{.}2$a$.$ Between FIFO and LIFO, which method would result in the higher pretax income?$2$b$.$ Between FIFO and LIFO, which would result in the higher EPS?$3.$ Between FIFO and LIFO, which method would result in the lower income tax expense? Assume a $20$ percent average tax rate$\mathrm{.}4.$ Between FIFO and LIFO, which method would produce the more favorable cash flow?

$2$b$.$ Between rIFU and LIFU, Which would result in the nigher trYS$?$

$3.$ Between FIFO and LIFO, which method would result in the lower income tax expense? Assume a $20$ percent $4.$ Between FIFO and LIFO, which method would produce the more favorable cash flow?

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Assuming the use of a periodic inventory system, prepare a partial income statement under each method of inventory average cost, $($b$)$ FIFO, $($c$)$ LIFC$,$ and $($d$)$ specific identification. For specific identification, assume that the first sale wa selected from the beginning inventory and the second sale was selected from the January $12$ purchase. $($Round the av cost per unit value to $2$ decimal places. Round the final value to nearest whole dollar.$)$

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