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 $18.20 per unit: Transactions Inventory, January 1 Units 590 Amount $1,652 Purchase, January 12 570 2,736 Purchase, January 26 170 1,156 Sale. Sale (450) (200) 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.) Method LIFO Tax Savings