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 500 units $18 Purchased 2,700 units @ $23 Purchased 1,000 units @ $24 During Year 3, Parvin sold 3,570 units of inventory at $40 per unit and incurred $15,900 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 $156,500, inventory of $9,000, common stock of $141,000, and retained earnings of $24,500. Required a. Prepare income statements using FIFO and LIFO. Note: Round intermediate calculations and final answers to the nearest whole dollar amount. PARVIN COMPANY Income Statements For the Year Ended December 31, Year 3 Sales Cost of goods sold Gross margin: Operating expenses Income before tax Income tax expense Net income FIFO LIFO $ 142,800 $ 142,800