The records of Lovett Aviation include the following accounts for inventory of aviation parts at July 31 of the current year: (Click the icon to view the records.) Read the requirements. ..... Requirement 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. Lovett Aviation Partial Income Statement Year Ended July 31 - X Data table Average cost FIFO LIFO Inventory 700 units @ $ 6.00 $ 4.200 Gross profit Aug Nov 1 Balance 5 Purchase 400 units @ $ 6.50 Requirement 2. Which inventory method would you use to minimize income tax? Explain why this method causes income tax to be the lowest. Jan @ $ 7.20 24 Purchase 6,500 units 8 Purchase 400 units 2,600 46,800 3,200 Apr Use the @ $ 8.00 V method to minimize income tax because cost of goods sold is highest (gross profit is lowest) under when inventory costs are Sales Revenue Jul 31 7,060 units $103,076 Print Done