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:

		Units	Unit Cost
Inventory, December 31, prior year		2,930	$ 11
For the current year:
Purchase, April 11		8,970	12
Purchase, June 1		7,990	17
Sales ($51 each)		10,850
Operating expenses (excluding income tax expense)	$ 192,500

Required:

Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO.

Compute the difference between the pretax income and the ending inventory amount for the two cases.

Which inventory costing method may be preferred for income tax purposes?

Prepare a separate income statement through pretax income that details cost of goods sold for B: LIFO. 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