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 $16.20 per unit: Transactions Units Amount Inventory, January 1 570 $1,995 Purchase, January 12 556 3,625 Purchase, January 26 150 1,125 Sale (430) Sale (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.) 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 $16.20 per unit: Transactions Units Amount Inventory, January 1 570 $1,995 Purchase, January 12 550 3,025 Purchase, January 26 150 1,125 Sale (439) Sale (200) [ P7-3 Part 4 4. Between FIFO or LIFO, which method would produce the more favorable cash flow