P7-3 (Static) Evaluating Four Alternative Inventory Methods Based on Income and Cash Flow LO7-2, 7-3

At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at $16 per unit:

What are the tax savings. I got it wrong more like yall did

Transactions	Units	Amount
Inventory, January 1	500	$2,365
Purchase, January 12	600	3,600
Purchase, January 26	160	1,280
Sale	(370)
Sale	(250)

Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Between FIFO and LIFO, which method would result in the lower income tax expense? Assume a 20 percent average tax rate