Please answer full question. ### Required Information**[The following information applies to the questions displayed below.]**The following information pertains to the inventory of Parvin Company during Year 2:- **Jan. 1** - Beginning Inventory: 600 units @ $38- **Apr. 1** - Purchased: 2,400 units @ $43- **Oct. 1** - Purchased: 800 units @ $46During Year 2, Parvin sold 3,500 units of inventory at $95 per unit and incurred $43,500 of operating expenses. Parvin currently uses the FIFO (First-In, First-Out) method but is considering a change to LIFO (Last-In, First-Out). All transactions are cash transactions. Assume a 40 percent income tax rate. Parvin started the period with cash of $79,000, inventory of $22,800, common stock of $54,000, and retained earnings of $47,800.---**c. Determine the amount of income tax that Parvin would pay using each cost flow method.**| Method | Amount ||----------------------------|-------------------|| Income tax paid using FIFO | || Income tax paid using LIFO | |

Calculation of Income Tax Paid Under FIFO Method Income tax Paid= Income before tax under FIFO…

Required information (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 600 units @ $ 38 2,400 units @ $ 43 800 units @ $ 46 During Year 2, Parvin sold 3,500 units of inventory at $95 per unit and incurred $43,500 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 40 percent income tax rate. Parvin started the period with cash of $79,000, inventory of $22,800, common stock of $54,000, and retained earnings of $47,800. c. Determine the amount of income tax that Parvin would pay using each cost flow method.