Required information P7-5 (Algo) Evaluating the LIFO and FIFO Choice When Costs Are Rising and Falling L07-2, 7-3 [The following information applies to the questions displayed below.] Income is to be evaluated under four different situations as follows: a. Prices are rising: (1) Situation A: FIFO is used. (2) Situation B: LIFO is used. b. Prices are falling: (1) Situation C: FIFO is used. (2) Situation D: LIFO is used. The basic data common to all four situations are sales, 504 units for $16,128, beginning inventory, 282 units; purchases, 400 units; ending inventory, 178 units, and operating expenses, $3,100. The income tax rate is 40%. Required: 1. Complete the following tabulation for each situation in Situations A and B (prices rising), assume the following: beginning inventory, 282 units at $8 = $2,256, purchases, 400 units at $9 = $3,600. In Situations C and D (prices falling), assume the opposite; that is, beginning inventory, 282 units at $9 = $2,538; purchases, 400 units at $8 = $3,200.Use periodic inventory procedures. (Round your answers to nearest dollar amount.) PRICES RISING PRICES FALLING Situation A Situation B Situation C Situation D FIFO LIFO FIFO LIFO $ 16,128 $ 16,128 $ 16,128 $ 16,128 Sales revenue Cost of goods sold: Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Expenses Pretax income 2,256 3,600 5,856 1,602 4.254 2,256 3,600 5,856 1,424 4,432 2,5381 3,200 5,738 1,424 2,538 3,200 5,738 1,602 3,100 3,100 3,100 11,874 3,100 8,774 3,510 5,264 Income tax expense Net income $