$!$

Required information

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

The following information pertains to the inventory of Parvin Company for Year $3$:

January $1$

April $1$

October $1$

Beginning inventory $400$ units a $$21$

Purchased $2,700$ units a $$26$

Purchased $900$ units a $$27$

During Year $3,$ Parvin sold $3,400$ units of inventory at $$42$ per unit and incurred $$16,300$ 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 $$132,600,$ inventory of $$8,400,$ common stock of $$118,000,$ and retained earnings of $$23,000.$

Required

a$.$ Prepare income statements using FIFO and LIFO.

Note: Round intermediate calculations and final answers to the nearest whole dollar amount.

$\backslash$table$[[$PARVIN COMPANY,$],[$Income Statements,,$],[$For the Year Ended December $31,$ Year $3,,],[$Sales$,$FIFO,$],[$Cost of goods sold,,$],[$Gross margin,,$],[$Operating expenses,,$],[$Income before tax,,$],[$Income tax expense,,$],[$Net income,,$]]$