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: I.ryn... 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? Prepare a separate income statement through pretax income that details cost of goods sold fo R. I IFO Note: Loss amounts should be indicated with a minus sign. Which inventory costing method may be preferred for income tax purposes