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 2,870 Unit Cost $ 12 Inventory, December 31, prior year For the current year: Purchase, April 11 Purchase, June 1 Sales ($55 each) Operating expenses (excluding income tax expense) 8,820 7,920 10,830 13 18 $187,500 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. 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. Answer is complete but not entirely correct. EMILY COMPANY Income Statement For the Year Ended December 31, current year Case A FIFO $ 595,650 Case B LIFO $ 595,650 Sales revenue Cost of goods sold: Beginning inventory Purchases $ $ 34,440 257,220 34,440 257,220 Goods available for sale Ending inventory 291,660 153,740 291,660 180,390 X Cost of goods sold Gross profit Operating expenses 137,920 457,730 187,500 11,270 484,380 187,500 Pretax income $ 270,230 $ 296,880 3. Which inventory costing method may be preferred for income tax purposes? Which inventory costing method may be preferred for income tax purposes