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 recuirements. Inventary 3,300 Aug 1 Balance BD0 units $ Nov 5 Purchase 500 units 3,600 @S 5.50 @ $ 7.20 $ 7.50 @ S 8.00 52,500 Jan Apr 24 Purchase 7.000 units 8 Purchase 900 units 7,200 Sales Revenue Jul 31 a.010 units $111,339 Requirement 1. Prepare a parlial income statement through gross profil under the average, FIFO, and LIFO methods. Round avera Lovett Aviation Partial Income Statement Year Ended July 31 Average cost FIFO LIFO Sales revenue 111338|| 1113391 Cost of goods sold -66600 Gross profit 44739 111339 Print Done Requirement 2. Which inventory method would you use to minimize income lax? Explain why this melhod causes income lax to be the lowest. Requirements Use the LIFO method to minimize income tax because cost of goods sold is highest gross profit is lowest) under LIFO when inventory costs are neing 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 lax to be the lowest Print Done