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The records of Bryan Aviation include the following accounts for inventory of aviation fuel at December 31 of the current year: Inventory Jan 1 balance

The records of Bryan Aviation include the following accounts for inventory of aviation fuel at December 31 of the current year:

Inventory

Jan 1 balance 740 units @ $7.50 5,550

Mar 6 purchase 320 units @ $7.80 2,496

Jun 22 purchase 8,380 units @ $8.10 67,878

Oct 4 purchase 530 units @ $9.10 4,823

Sales revenue

Dec 31 9,030 units 128,226

Requirements

1. Prepare a partial Income Statement through gross profit under the average, FIFO, and LIFO

methods. Round average cost per unit to four decimal places and all other amounts to the

nearest whole dollar. step by step

2. Which inventory method would you use to minimize income tax? Explain why this method

causes income tax to be the lowest.

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