The records of Lovett Aviation include the following accounts for inventory of aviation parts at July 31 of the current year: LOADING...(Click the icon to view the records.) Read the requirements

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 Average cost FIFO LIFO Gross profit Requirement 2. Which inventory method would you use to minimize income tax? Explain why this method causes income tax to be the lowest. Use the method to minimize income tax because cost of goods sold is highest (gross profit is lowest) under w hen inventory costs are 1 Data Table - X $ Aug Nov Jan Apr 1 Balance 700 units 5 Purchase 400 units 24 Purchase 6,500 units 8 Purchase 400 units @ $6.00 @ $ 6.50 @ $ 7.20 @ $ 8.00 Inventory 4,200 2,600 46,800 3,200 Sales Revenue Jul 31 7,080 units $103,368 Partial Incom Year Ende Average co Cost of goods sold Ending inventory Requi Net income Operating expenses Use th Sales revenue method would yo o minimize incon A Data Table