Print$$ Supplies, Inc., sells laser printers and supplies. Bank Print$$ Supplies, Inc., is a corporation subject to a $40\%$ income tax.

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Bank Print$$ Supplies' income statementlong dashexcluding the effects of income tax under each of the$$ average$-$cost$,$ FIFO, and LIFO inventory costing methodslong dashis given.

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Part $1$

Compute the$$ company's income tax expense under the$$ average$-$cost$,$ FIFO, and LIFO inventory costing methods.

Bank Print Supplies, Inc.

Income Statement

Year Ended December $31$

Average Cost

FIFO

LIFO

Sales revenue

$$11,455$

$$11,455$

$$11,455$

Cost of goods sold

$5,858$

$5,848$

$5,974$

Gross profit

$$5,597$

$$5,607$

$$5,481$

Operating expenses

$3,900$

$3,900$

$3,900$

Net income before tax

$$1,697$

$$1,707$

$$1,581$

Income tax expense

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Assume Bank started the year with $90$ containers of ink$($average cost of $ $8\mathrm{.}50$each$,$ FIFO cost of $ $8\mathrm{.}90$each$,$ LIFO cost of $ $7\mathrm{.}80$each$).$ During the$$ year, the company purchased $720$ containers of ink at $ $10\mathrm{.}30$ and sold $580$ units for $ $19\mathrm{.}75$ each. Bank paid operating expenses throughout the$$ year, a total of $ $3$ comma $900.$

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Bank Print Supplies, Inc.

Income Statement

Year Ended December $31$

Average Cost

FIFO

LIFO

Sales revenue

$$11,455$

$$11,455$

$$11,455$

Cost of goods sold

$5,858$

$5,848$

$5,974$

Gross profit

$5,597$

$5,607$

$5,481$

Operating expenses

$3,900$

$3,900$

$3,900$

Net income before tax

$$1,697$

$$1,707$

$$1,581$

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Compute the$$ company's income tax expense under the$$ average$-$cost$,$ FIFO, and LIFO inventory costing methods. Which method would you select to$($a$)$ maximize income before tax and$($b$)$ minimize income tax$$ expense? $($Round your answer to the nearest whole$$ dollar.$)$