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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 for Year $3$:

January $1$ Beginning inventory $500$ units @ $$19$

April $1$

Purchased $2,600$ units @ $$24$

October $1$ Purchased $1,200$ units @ $$25$

During Year $3,$ Parvin sold $3,655$ units of inventory at $$44$ per unit and incurred $$16,000$ 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 $$164,000,$ inventory of $$9,500,$

common stock of $$149,000,$ and retained earnings of $$24,500.$

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