Effects of Inventory Costing Methods Jefferson Enterprises has the following income statement data available for the year: Sales revenue Operating expenses $737,200 243,700 Interest expense 39,500 Income tax rate 37% Jefferson uses a perpetual inventory accounting system and the average cost method. Jefferson is considering adopting the FIFO or LIFO method for costing inventory. Jefferson's accountant prepared the following data: Ending inventory Cost of goods sold Required: If Average Cost Used i If FIFO Used If LIFO Used $65,950 399,050 $70,500 386,500 $40,100 424,900 1. Compute income before taxes, income taxes expense, and net income for each of the three inventory costing methods. (Round to the nearest dollar) Income before taxes Income tax expense Average Cost FIFO LIFO Net income 2. Conceptual Connection: Which method produces the most realistic amount for net income? For Inventory? For net income For Inventory