The following information pertains to the inventory of Parvin Company during Year $2.$

During Year $2,$ Parvin sold $3,000$ units of inventory at $$95$ per unit and incurred $$47,500$ of operating expenses. Parvin

currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a $40$

percent income tax rate. Parvin started the period with cash of $$87,000,$ inventory of $$14,400,$ common stock of $$62,000,$

and retained earnings of $$39,400.$

b$.$ Prepare income statements using FIFO and LIFO.

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Prepare income statements using FIFO.