Required information Esercise 56A Income tox effect of sfing om FiFO te UIFOLO S1 The following information applies to the questions displayed below The following information pertains to the inventory of Parvin Company during Year 2: Jan. 1 Beginning Inventory 55e units $35 Apr. 1 Purchased Oct. 1 Purchased 2,950 units $48 750 units $43 During Year 2, Parvin sold 4,000 units of inventory at $80 per unit and incurred $51,000 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 $94,000, inventory of $19,250, common stock of $69,000 and retained earnings of $44,250. b. Prepare Income statements using FIFO and LIFO. PARVIN COMPANY Income Statements For the Year Ended December 31, Year 2 FIFO Cost of goods sold: Cost of goods sold LIFO Cost of goods sold: Cost of goods sold 0 0