Givoly Inc. 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 7,200 Unit Cost $10 Inventory, December 31, prior year For the current year: Purchase, March 5 Purchase, September 19 Sale ($30 each) Sale (532 each) Operating expenses (excluding income tax expense) 8 4 19,200 10,200 8,200 16,200 $402,000 5:37 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. (Loss amounts should be indicated with a minus sign.) GNVOLY INC Income Statement For the Year Ended December 31, current year Case A FIFO Case B LIFO Cost of goods solid Goods available for sale 0 0 Cost of goods said Givoly Inc. 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 7,200 Unit Cost $10 Inventory, December 31, prior year For the current year: Purchase, March 5 Purchase, September 19 Sale (30 each) Sale ($32 each) Operating expenses (excluding income tax expense) 8 4 19, 200 10, 200 8,200 16,200 $402,000 2. Compute the difference between the pretax income and the ending inventory amounts for the two cases. Comparison of Amounts Case A Case B FIFO LIFO Difference Pretax income Ending inventory Givoly Inc. 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 $10 7,200 Inventory, December 31, prior year For the current year: Purchase, March 5 Purchase, September 19 Sale ($30 each) Sale ($32 each) Operating expenses (excluding income tax expense) 8 4 19, 200 10, 200 8,200 16, 200 $402,000 3. Which inventory costing method may be preferred for income tax purposes? Which inventory costing method may be preferred for income tax purposes