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Givoly Incorporated uses a periodic inventory system. At the end of the annual accounting period, December 3 1 of the current year, the accounting records

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 :
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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