! 2012 Required information P7-3 (Algo) Evaluating Four Alternative Inventory Methods Based on Income and Cash Flow LO7-2,7-3 [The following information applies to the questions displayed below! At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at $15.00 per unit Book ASH Transactions Inventory, January 1 Purchase, January 12 Purchase, January 26 Sale Sale Print Units 500 620 100 (380) (210) Amount $2,500 4,340 900 Terences P7-3 Part 3 3. Between FIFO or LIFO, which method would result in the lower income tax expense? Assume a 30 percent average tax rate. (Round your answer to 2 decimal places.) Tax Saving Method