\begin{tabular}{|c|c|c|c|c|c|c|} \hline \multirow[t]{2}{*}{ FIFO } & \multicolumn{3}{|c|}{ Cost of Goods Available for Sale } & \multicolumn{3}{|c|}{ Cost of Goods Sold } \\ \hline & \begin{tabular}{c} Number of \\ Units \end{tabular} & Cost per Unit & \begin{tabular}{c} Cost of \\ Goods \\ Available for \\ Sale \end{tabular} & \begin{tabular}{l} Number of \\ Units Sold \end{tabular} & \begin{tabular}{c} Cost per \\ Unit \end{tabular} & \begin{tabular}{l} Cost of \\ Goods \\ Sold \end{tabular} \\ \hline Beginning inventory & & & & & & $ \\ \hline \multicolumn{7}{|l|}{ Purchases: } \\ \hline January 12 & & & & & & $ \\ \hline \multicolumn{7}{|l|}{ January 26} \\ \hline Total & 0 & & & 0 & & \\ \hline \multirow[t]{2}{*}{ LIFO } & \multicolumn{3}{|c|}{ Cost of Goods Available for Sale } & \multicolumn{3}{|c|}{ Cost of Goods Sold } \\ \hline & \begin{tabular}{c} Number of \\ Units \end{tabular} & Cost per Unit & \begin{tabular}{c} Cost of \\ Goods \\ Available for \\ Sale \end{tabular} & \begin{tabular}{l} Number of \\ Units Sold \end{tabular} & \begin{tabular}{c} Cost per \\ Unit \end{tabular} & \begin{tabular}{l} Cost of \\ Goods \\ Sold \end{tabular} \\ \hline \multicolumn{7}{|l|}{ Beginning inventory } \\ \hline \multicolumn{7}{|l|}{ Purchases: } \\ \hline \multicolumn{7}{|l|}{ January 12} \\ \hline \multicolumn{7}{|l|}{ January 26} \\ \hline Total & & & & 0 & & \\ \hline \multirow[t]{2}{*}{ Specific Identification } & \multicolumn{3}{|c|}{ Cost of Goods Available for Sale } & \multicolumn{3}{|c|}{ Cost of Goods Sold } \\ \hline & \begin{tabular}{c} Number of \\ Units \end{tabular} & Cost per Unit & \begin{tabular}{c} Cost of \\ Goods \\ Available for \\ Sale \end{tabular} & \begin{tabular}{l} Number of \\ Units Sold \end{tabular} & \begin{tabular}{c} Cost per \\ Unit \end{tabular} & \begin{tabular}{l} Cost of \\ Goods \\ Sold \end{tabular} \\ \hline \multicolumn{7}{|l|}{ Beginning inventory } \\ \hline \multicolumn{7}{|l|}{ Purchases: } \\ \hline \multicolumn{7}{|l|}{ January 12} \\ \hline \multicolumn{7}{|l|}{ January 26} \\ \hline Total & & & $ & 0 & & $ \\ \hline \end{tabular} 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. Complete this question by entering your answers in the tabs below. Between FIFO and LIFO, which method would result in the lower income tax expense? Assume a 20 percent average tax rate. \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multirow[t]{2}{*}{ FIFO } & \multicolumn{3}{|c|}{ Cost of Goods Available for Sale } & \multicolumn{3}{|c|}{ Cost of Goods Sold } \\ \hline & \begin{tabular}{c} Number of \\ Units \end{tabular} & Cost per Unit & \begin{tabular}{c} Cost of \\ Goods \\ Available for \\ Sale \end{tabular} & \begin{tabular}{l} Number of \\ Units Sold \end{tabular} & \begin{tabular}{c} Cost per \\ Unit \end{tabular} & \begin{tabular}{l} Cost of \\ Goods \\ Sold \end{tabular} \\ \hline Beginning inventory & & & & & & $ \\ \hline \multicolumn{7}{|l|}{ Purchases: } \\ \hline January 12 & & & & & & $ \\ \hline \multicolumn{7}{|l|}{ January 26} \\ \hline Total & 0 & & & 0 & & \\ \hline \multirow[t]{2}{*}{ LIFO } & \multicolumn{3}{|c|}{ Cost of Goods Available for Sale } & \multicolumn{3}{|c|}{ Cost of Goods Sold } \\ \hline & \begin{tabular}{c} Number of \\ Units \end{tabular} & Cost per Unit & \begin{tabular}{c} Cost of \\ Goods \\ Available for \\ Sale \end{tabular} & \begin{tabular}{l} Number of \\ Units Sold \end{tabular} & \begin{tabular}{c} Cost per \\ Unit \end{tabular} & \begin{tabular}{l} Cost of \\ Goods \\ Sold \end{tabular} \\ \hline \multicolumn{7}{|l|}{ Beginning inventory } \\ \hline \multicolumn{7}{|l|}{ Purchases: } \\ \hline \multicolumn{7}{|l|}{ January 12} \\ \hline \multicolumn{7}{|l|}{ January 26} \\ \hline Total & & & & 0 & & \\ \hline \multirow[t]{2}{*}{ Specific Identification } & \multicolumn{3}{|c|}{ Cost of Goods Available for Sale } & \multicolumn{3}{|c|}{ Cost of Goods Sold } \\ \hline & \begin{tabular}{c} Number of \\ Units \end{tabular} & Cost per Unit & \begin{tabular}{c} Cost of \\ Goods \\ Available for \\ Sale \end{tabular} & \begin{tabular}{l} Number of \\ Units Sold \end{tabular} & \begin{tabular}{c} Cost per \\ Unit \end{tabular} & \begin{tabular}{l} Cost of \\ Goods \\ Sold \end{tabular} \\ \hline \multicolumn{7}{|l|}{ Beginning inventory } \\ \hline \multicolumn{7}{|l|}{ Purchases: } \\ \hline \multicolumn{7}{|l|}{ January 12} \\ \hline \multicolumn{7}{|l|}{ January 26} \\ \hline Total & & & $ & 0 & & $ \\ \hline \end{tabular} 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. Complete this question by entering your answers in the tabs below. Between FIFO and LIFO, which method would result in the lower income tax expense? Assume a 20 percent average tax rate