Required information [The following information applies to the questions displayed below.] Givoly Inc. 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 7,300 Unit Cost $11 19,300 9 10,300 5 8,300 Sale ($28 each) 16,300 Operating expenses (excluding income tax expense) $403,000 Purchase, September 19 Sale ($26 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. (Loss amounts should be indicated with a minus sign.) Sales revenue Cost of goods sold: GIVOLY INC. 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 2. Compute the difference between the pretax income and the ending inventory amounts for the two cases. Case A Comparison of Amounts Case B Pretax income Ending inventory FIFO LIFO Difference 3. Which inventory costing method may be preferred for income tax purposes? Which inventory costing method may be preferred for income tax purposes