Required information [The following information applies to the questions displayed below.] Emily Company 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: Unit Units Cost Inventory, December 31, prior year For the current year: Purchase, April 11 Purchase, Juhe 1 Sales ($50 each) 3,000 $ 9 9,000 10 7,000 15 10,000 Operating expenses (excluding income tax expense); $190,000 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. Cost of goods sold: EMILY COMPANY 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 2. Compute the difference between the pretax income and the ending inventory amount for the two cases. Comparison of Amounts Pretax income Ending inventory Case A FIFO Case B 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?