The records of Lovett Aviation include the following accounts for inventory of aviation parts at 31 of the current year Click the icon to viow the records) Read the icements Requirement 1. Prepare a partial income statement through gross proft under the average, FIFO, and LIFO methods. Round average cost per unit to two decimal places and other amounts to the mandoli Lovett Aviation Partial Income Statement Year Ended July 31 Average cost FFO LIFO Gross profit Requirement 2 Which inventory method would you use to minimize income tak? Explain why this method causes income tax to be the lowest Use the average cost method to minimize income tax because cost of goods sold is highest (gross profit is lowest) under when inventory costs are taling average cost FIFO LIFO records) af July Son current year: Data table 18! Jamounts to the nearest doll Inventory @ $ 6.00 $ 4,200 Aug Nov 1 Balance 700 units 5 Purchase 400 units 24 Purchase 7.300 units 8 Purchase 600 units Jan Apr @ $ 6.50 $ 7.00 @ $ 8.50 2,600 51,100 5,100 Sales Revenue Jul 31 8,050 units $117.530 Co Print Done places and all other amounts to the nearest do - X Requirements 1. Prepare a partial income statement through gross profit under the average, FIFO, and LIFO methods. Round average cost per unit to two decimal places and all other amounts to the nearest dollar. 2. Which inventory method would you use to minimize income tax? Explain why this method causes income tax to be the lowest. Print Done are falling faling rising static