Required information Exercise 5-6A Income tax effect of shifting from FIFO to LIFO LO 5-1 (The following Information applies to the questions displayed below) The following information pertains to the inventory of Parvin Company during Year 2: Jan. 1 Apr. 1 Oct. 1 Beginning Inventory Purchased Purchased 400 units $30 2,000 unito $35 600 units $38 During Year 2, Parvin sold 2,700 units of inventory at $90 per unit and incurred $41,500 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. Parvin started the period with cash of $75,000, Inventory of $12,000, common stock of $50,000, and retained earnings of $37,000. Exercise 5-6A Part a Required a. Record the above transactions in general Journal form and post to T-accounts using (1) FIFO and (2) LIFO. Use a separate set of Journal entries and T-accounts for each method. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) FIFO Required information FIFO View transaction list Journal entry worksheet