The records of Lovett Aviation include the following accounts for inventory of aviation fuel at July 31 of the current year. Inventory Aug 1 Balance 700 units @$6.00 $4200 Nov 5 Balance 400 units @ $6.50 2600 Jan 24 Balance 6500 units @$7.20 46,800 Apr 8 Balance 400 units @$ 8.00 3200 Sales Revenue Jul 31 7020 units $100,386 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. 2.Which inventory method would you use to minimize income tax? Explain why this method causes income tax to be the lowest. Use the (a). average-cost (b).FIFO (c). LIFO method to minimize income tax because cost of goods sold is highest (gross is lowest) under (a). average-cost (b). FIFO (c). LIFO when inventory cost are (a) falling (b). rising (c). static