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		6,300	$ 13
For the current year:
Purchase, March 5		18,300	11
Purchase, September 19		9,300	7
Sale ($30 each)		8,500
Sale ($32 each)		15,300
Operating expenses (excluding income tax expense)	$ 393,000

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?