Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: B: LIFO. Sales revenue EMILY COMPANY Income Statement For the Year Ended December 31, current year Case A FIFO Case B LIFO Cost of goods sold: Beginning inventory $ 44,850 $ 44,850 Purchases 143,520 14,350 Goods available for sale 188,370 Ending inventory Cost of goods sold Gross profit Operating expenses Pretax income 59,200 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 amount for the two cases. Note: Loss amounts should be indicated with a minus sign. Comparison of Amounts Case A Pretax income Ending inventory FIFO Case B LIFO Difference Emily pany syste annual accounting period, December 31 of the accounting records provided the following information for product 2: Inventory, December 31, prior year For the current year: Purchase, April 11 Purchase, June 1 Sales ($55 each) Operating expenses (excluding income tax expense) Required: Units 2,990 Unit Cost $ 15 8,970 16 7,900 21 10,830 $ 188,500 1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) c LIFO. 2. Compute the difference between the pretax income and the ending inventory amount for the two cases. 3. Which inventory costing method may be preferred for income tax purposes? Complete this question by entering your answers in the tabs below. 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. Sales revenue EMILY COMPANY Income Statement For the Year Ended December 31, current year Case A FIFO Case B LIFO Cost of goods sold: Beginning inventory $ 44,850 $ 44,850 Purchases 143,520 14,350 Goods available for sale 188,370 59,200