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:

		Units	Unit Cost
Inventory, December 31, prior year		7,800	$ 10
For the current year:
Purchase, March 5		19,800	8
Purchase, September 19		10,800	4
Sale ($26 each)		8,800
Sale ($28 each)		16,800
Operating expenses (excluding income tax expense)	$ 408,000

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?