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Required information

$[$The following information applies to the questions displayed below.$]$

The following information pertains to the inventory of Parvin Company during Year $2.$

January $1$

April $1$

October $1$

Beginning Inventory

Purchased

Purchased

$400$ units @ $$30$

$2,000$ units @ $$35$

$600$ units @ $$38$

During Year $2,$ Parvin sold $2,700$ units of inventory at $$90$ per unit and incurred $$41,500$ 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 $$75,000,$ inventory of $$12,000,$ common stock of $$50,000,$ and retained earnings of $$37,000.$

c$.$ Determine the amount of income tax that Parvin would pay using each cost flow method.

$\backslash$table$[[$Income tax paid using FIFO,$$,],[$Income tax paid using LIFO,$0,0]]$