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 $17.20 per unit: Transactions Inventory, January 1 Purchase, January 12 Purchase, January 26 Sale Sale Units 580 560 160 (440) (200) Amount $2,958 3,976 1,456 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 Savings Method View transaction list Journal entry worksheet 1 > Record the depreciation expense for year 1. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal