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: Inventory, December 31, prior year For the current year: Purchase, March 5 Units 7,000 Unit Cost $ 11 19,000 10,000 8,000 16,000 Operating expenses (excluding income tax expense) $ 400,000 Purchase, September 19. Sale ($20 each) Sale ($30 each) 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. 2. Compute the difference between the pretax income and the ending inventory amounts for the two cases. 3. Which inventory costing method may be preferred for income tax purposes? Required 1 Required 2 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. Cost of goods sold: GIVOLY INCORPORATED Income Statement For the Year Ended December 31, current year Case A FIFO Case B LIFO Goods available for sale 0 0 Cost of goods sold Pretax income/loss Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the difference between the pretax income and the ending Inventory amounts for the two cases. Comparison of Amounts Case A FIFO Pretax income Ending inventory Case B LIFO Difference < Required 1 Required 3 > Required 1 Required 2 Required 3 Which inventory costing method may be preferred for income tax purposes? Which inventory costing method may be preferred for income tax purposes? < Required 2 Required 3>