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 Units Unit Cost 2,830 $12 8,910 13 Purchase, June 1 7,920 18 10,870 Operating expenses (excluding income tax expense) $ 192,500 Sales ($55 each) 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? Complete this question by entering your answers in the tabs below. 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. EMILY COMPANY Cost of goods sold: Income Statement For the Year Ended December 31, current year Case A FIFO Goods available for sale 0 Cost of goods sold Case B LIFO 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>