Givoly Incorporated 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 $2$ :

$\backslash$table$[[$Inventory$,$ December $31,$ prior year,Units$],[$For the current year:,$6,600],[$Purchase$,$ March $5,18,600],[$Purchase$,$ September $19,9,600],[$Sale each$),8,200],[$Sale $($$$29$ each$),15,600],[$Operating expenses $($excluding income tax expense$),4]]$

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 amounts for the two cases.

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

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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.

Note: Loss amounts should be indicated with a minus sign.

GIVOLY INCORPORATED

Income Statement

For the Year Ended December $31,$ current year

$\backslash$table$[[$Case A$,$& Case B$],[$FIFO$,$LIFO$]]$

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