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Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise

inventory $($ending inventory December $31,$ prior year$),2,000$ units at $$38$; purchases, $8,000$ units at $$40$;

expenses $($excluding income taxes$),$ $$184,500$; ending inventory per physical count at December $31,$ current

year, $1,800$ units; sales, $8,200$ units; sales price per unit, $$75$; and average income tax rate, $30$ percent.

Between FIFO and LIFO, which method is preferable in terms of $(a)$ net income and $(b)$ income taxes paid $($cash flow$),$

assuming that prices were falling?