(Learning Objective 2, 3: Applying the different inventory costing methods—

perpetual system) The records of Buzz Aviation include the following accounts for inventory of aviation fuel at December 31 of the current year:

❙ Requirements 1. Prepare a partial income statement through gross profi t 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.