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. Record the above transactions in general journal form using FIFO. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)