Required information Exercise 5-6A (Algo) 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 during Year 2. During Year 2, Parvin sold 3,000 units of inventory at $95 per unit and incurred $47,500 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 40 percent income tax rate. Parvin started the period with cash of $87,000, inventory of $14,400, common stock of $62,000, and retained earnings of $39,400. Exercise 5-6A (Algo) Part a Required a. Record the above transactions in general journal form and post to T-accounts using (1) FIFO and (2) LIFO. Use a separate set of journal entries and T-accounts for each method. Answer is not complete. Complete this question by entering your answers in the tabs below. Post the above transactions to T-accounts using FIFO. Required information Exercise 5-6A (Algo) 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 during Year 2. During Year 2, Parvin sold 3,000 units of inventory at $95 per unit and incurred $47,500 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 40 percent income tax rate. Parvin started the period with cash of $87,000, inventory of $14,400, common stock of $62,000, and retained earnings of $39,400. Exercise 5-6A (Algo) Part a Required a. Record the above transactions in general journal form and post to T-accounts using (1) FIFO and (2) LIFO. Use a separate set of journal entries and T-accounts for each method. Answer is not complete. Complete this question by entering your answers in the tabs below. Post the above transactions to T-accounts using FIFO