The data of Lovett Aviation embrace the next accounts for stock of aviation gas at July 31 of the present yr.InventoryAug 1 Stability 700 models @$6.00 $4200Nov 5 Stability 400 models @ $6.50 2600Jan 24 Stability 6500 models @$7.20 46,800Apr eight Stability 400 models @$ eight.00 3200Gross sales RevenueJul 31 7020 models $100,386Necessities:1. Put together a partial earnings assertion by way of gross revenue below the common, FIFO, and LIFO strategies. Spherical common price per unit to 4 decimal locations and all different quantities to the closest complete greenback.2.Which stock technique would you utilize to reduce earnings tax? Clarify why this technique causes earnings tax to be the bottom. Use the (a). average-cost (b).FIFO (c). LIFO technique to reduce earnings tax as a result of price of products bought is highest (gross is lowest) below (a). average-cost (b). FIFO (c). LIFO when stock price are (a) falling (b). rising (c). static.
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