Required information Skip to question [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 400 units @ $19 April 1 Purchased 2,700 units @ $24 October 1 Purchased 1,100 units @ $25 During Year 3, Parvin sold 3,570 units of inventory at $42 per unit and incurred $18,400 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 $216,900, inventory of $7,600, common stock of $200,000, and retained earnings of $24,500. b. Determine the amount of income tax