Exercise 5-6A Income tax effect of shifting from FIFo to LIFo Lo 5-1 (The following information applies to the questions displayed below] The following Information pertains to the Inventory of Parvin Company. Jan.1 Beginning inventory 500 units $34 Apr. 1 Purchased 2,350 units a $39 Oct. 1 Purchased 700 units $42 During 2016, Parvin sold 3,200 units of Inventory at $100 per unit and incurred $48,ooo of operating expenses. Parvln currenty uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate, Parvin started the period with cash of $88,000, inventory of $17ooo, common stock and retained earnings of $42,ooo. References Section Break Exercise 56A Income tax effect of shifting from FlPo to LUFO LO S-1 6. 1.42 points