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Required information Skip to question [ The following information applies to the questions displayed below. ] The following information pertains to the inventory of Parvin

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[The following information applies to the questions displayed below.]
The following information pertains to the inventory of Parvin Company for Year 3:
January 1 Beginning inventory 300 units @ $17
April 1 Purchased 2,500 units @ $22
October 1 Purchased 1,000 units @ $23
During Year 3, Parvin sold 3,230 units of inventory at $42 per unit and incurred $18,300 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 $209,900, inventory of $5,100, common stock of $192,000, and retained earnings of $23,000.b. Determine the amount of income tax that Parvin would pay using each cost flow method.

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