The Dixon Company is starting in business on December 31, 20X0. In each half year, from 20X1 through 20X3, it expects to purchase 500 units and it expects to sell 250 units for the amounts listed in the following table. In 20X4 it expects to purchase and sell 250 units in each half year. In 20X5, it expects to purchase no units and sell all remaining units for the amount indicated in the following table: (Click the icon to view the purchase and sale data.) Assume that there are no costs or expenses other than those shown earlier. The tax rate is 20%, and taxes for each year are payable on December 31 of each year. Dixon Company is trying to decide whether to use periodic FIFO or LIFO throughout the 5-year period. Read the requirements. Requirement 1. What was net income under FIFO for each of the 5 years? Under LIFO? Show calculations. Begin by calculating the net income under FIFO for each of the 5 years, then compute the totals for the 5-year period. (Round your answers to the nearest whole dollar.) Dixon Company Income Statement FIFO 20X1 20X2 20X3 20X4 20X5 Total Sales Cost of goods sold Income before taxes Tax expense Net income Now calculate the net income under LIFO for each of the 5 years, then compute the totals for the 5-year period. (Round your answers to the nearest whole dollar.) Dixon Company Enter any number in the edit fields and then continue to the next question. Now calculate the net income under LIFO for each of the 5 years, then compute the totals for the 5-year period. (Round your answers to the nearest whole do Dixon Company Income Statement LIFO 20X1 20X2 20X3 20X4 20X5 Total Sales Cost of goods sold Income before taxes Tax expense Net income Requirement 2. Explain briefly which method, LIFO or FIFO, seems more advantageous, and why. is more advantageous because it This Enter any number in the edit fields and then continue to the next question. 20X1 20X2 20X3 20X4 20X5 Purchases First 6 months 1,000 $ 1,250 1,250 $ 2,000 2,750 $ 2,750 1,375 1,750 O O Second 6 months $ Total 2,250 $ 3,250 $ 5,500 $ 3,125 0 $ 4,000 $ 4,000 $ 4,000 $ 4,000 $ 9,000 Sales (at selling price)