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

During Year $2,$ Parvin sold $3,600$ units of inventory at $$95$ per unit and incurred $$50,000$ 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 $$92,000,$

inventory of $$13,950,$ common stock of $$67,000,$ and retained earnings of $$38,950.$

Exercise $5-6$A $($Algo$)$ Part b

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

Answer is not complete.

Complete this question by entering your answers in the tabs below.

FIFO

LIFO

Prepare income statements using LIFO.

$^$ Please do the FIFO and LIFO tables.