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: Units Unit Cost Inventory, December 31, prior year 2,990 $ 12 For the current year: Purchase, April 11 8, 860 13 Purchase, June 1 7,980 18 Sales ($55 each) 10,940 Operating expenses (excluding income tax expense) $189 , 500 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 $ 281,830 x $ 238,940 x $ 42,890 Ending inventory $ 155,470 $ 112,580 $ 42,890