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. BROADHEAD COMPANY Income Statement For the Year Ended December 31, current year Case A Case B. FIFO LIFO Cost of goods sold: Goods available for sale 0 0 Cost of goods sold 2. Compute the difference between the pretax income and the ending inventory amount for the two cases. Comparison of Amounts Case A Case B FIFO LIFO Difference Pretax income Ending inventory 3. Which inventory costing method may be preferred for income tax purposes? O LIFO FIFO