Homework Saved Help 0 Required information (The following information applies to the questions displayed below.) The following information pertains to the inventory of Parvin Company during Year 2 Jan. 1 Apr.1 Oct. 1 Beginning Inventory Purchased Purchased 400 units $30 2,000 units e$35 600 units $38 During Year 2, Parvin sold 2,700 units of inventory at $90 per unit and incurred $41,500 of operating expenses. Parvin currently 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 $75,000, inventory of $12,000, common stock of $50,000, and retained earnings of $37,000. c. Determine the amount of income tax that Parvin would pay using each cost flow method Income tax paid using FIFO Income tax paid using LIFO