Required information [The following information applies to the questions displayed below.] Income is to be evaluated under four different situations as follows: a. Prices are rising: (1) Situation A: FIFO is used. (2) Situation B: LIFO is used. b. Prices are falling: (1) Situation C: FIFO is used. (2) Situation D: LIFO is used. The basic data common to all four situations are sales, 500 units for $15,000; beginning inventory, 300 units; purchases, 400 units; ending inventory, 200 units; and operating expenses, $4,000. The income tax rate is 30%. Required: 1. Complete the following tabulation for each situation. In Situations A and B (prices rising), assume the following: beginning inventory, 300 units at $11 = $3,300; purchases, 400 units at $12 = $4,800. In Situations C and D (prices falling), assume the opposite; that is, beginning inventory, 300 units at $12 = $3,600; purchases, 400 units at $11 - $4,400. Use periodic inventory procedures. PRICES RISING PRICES FALLING Situation A FIFO Situation B LIFO Situation C FIFO Situation D LIFO Sales revenue $ 15,000 $ 15,000 $ 15,000 $ 15,000 Cost of goods sold: Beginning inventory 3,300 Purchases 4,800 Goods available for sale 8,100 Ending inventory 2,400 Cost of goods sold 5,700 Gross profit 9,300 Expenses 4,000 4,000 4,000 4,000 Pretax income 5,300 Income tax expense 1,590 Net income $ 3,710