Saved Chapter 5 Homework 0 Required information Exercise 5-6 Income tax effect of shifting from FIFO to LIFO LO 5-1 The following information applies to the questions displayed below) Part 1013 The following information pertains to the inventory of Parvin Company for Year 3: 125 pr.1 Oct. 1 Beginning inventory Purchased Purchased 400 units $20 2.600 units. $25 1,100 units 526 fola few During Year 3, Parvin sold 3.485 units of inventory at $42 per unit and incurred $18.800 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 $212,000, inventory of $8,000, common stock of $195,000, and retained earnings of $25,000 Exercise 5-6 Parta a. Prepare income statements using FIFO and LIFO. (Round intermediate calculations and final answers to the nearest whole dollar amount.) PARVEN COMPANY for the Year Endod December 31. Your LO S1460 146 370