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?