P7-3 (Algo) Evaluating Four Alternative Inventory Methods Based on Income and Cash Flow L07-2, 7-3 (The following information applies to the questions displayed below.) At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at $18.60 per unit: Units 670 640 Transactions Inventory, January 1 Purchase, January 12 Purchase, January 26 Sale Sale Amount $3,752 4,864 1,920 200 (530) (200) P7-3 Part 3 3. Between FIFO or LIFO, which method would result in the lower income tax expense? Assume a 30 percent average tax rate. (Round your answer to 2 decimal places.) Tax Savings Method LIFO