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 2.920 Unit Cont $10 Inventory, December 31, prior year For the current years Purchase, April 11 Purchase, June 1 Sales (53 each) Operating expenses (excluding income tax expense) 8,950 7.820 10,980 11 16 $188,000 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. EMILY COMPANY Income Statement For the Year Ended December 31, current year Casa Case B Required: 1. Prepare a separate income statement through pretax income that details cost of goods sold for ( Case A: FIFO and Case 8 LIFO EMILY COMPANY Income Statement For the Year Ended December 31, current year CASA FIFO $ 581.140 Case UFO $ 581,940 Sales revenue Cost of goods sold Beginning inwentory Purchases $ s 29.200 223.570 20,200 223,670 252.770 252.770 Goods available for sale Ending inventory Cost of goods sold * ya Purchase, April 11 Purchase, June 1 Sales ($53 each) Operating expenses (excluding income tax expense) 8,950 7,820 10,980 16 $168,000 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 15 Sales (553 each) Operating expenses (excluding income tax expense) 20 10,980 $188,000 3. Which inventory costing method may be preferred for income tax purposes? Which inventory costing method may be preferred for income tax purposes