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Required information Skip to question [The following information applies to the questions displayed below.] The following information pertains to the inventory of Parvin Company for Year 3: Jan. 1 Beginning inventory 400 units @ $ 21 Apr. 1 Purchased 2,800 units @ $ 26 Oct. 1 Purchased 900 units @ $ 27 During Year 3, Parvin sold 3,485 units of inventory at $42 per unit and incurred $15,700 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. Parvin started the period with cash of $148,100, inventory of $8,400, common stock of $132,000, and retained earnings of $24,500. Required a. Prepare income statements using FIFO and LIFO. (Round intermediate calculations and final answers to the nearest whole dollar amount.)
PARVIN COMPANY Income Statements For the Year Ended December 31, Year 3 FIFO LIFO Sales $ 146,370 $ 146,370 Cost of goods sold Gross margin Income before tax 0 0
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