Emily Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Inventory, December 31, prior year For the current year: Purchase, April 11 Purchase, June 1 Units 2,970 Unit Cost $ 13 8,840 14 7,880 19 Sales ($60 each) 10,810 Operating expenses (excluding income tax expense) $ 190,500 Required: 1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO. 2. Compute the difference between the pretax income and the ending inventory amount for the two cases. 3. Which inventory costing method may be preferred for income tax purposes? Required 1 Required 2 Required 3 Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO. Cost of goods sold: EMILY COMPANY Income Statement For the Year Ended December 31, current year Goods available for sale Cost of goods sold Case A FIFO Case B LIFO < Required 1 Required 2 > Required 1 Required 2 Required 3 Compute the difference between the pretax income and the ending inventory amount for the two cases. Note: Loss amounts should be indicated with a minus sign. Comparison of Amounts Case A FIFO Pretax income Ending inventory Case B LIFO Difference < Required 1 Required 3 > Required 1 Required 2 Required 3 Which inventory costing method may be preferred for income tax purposes? Which inventory costing method may be preferred for income tax purposes? < Required 2 Required 3 >