Scoresby Inc. uses a perpetual inventory system. At December 31, 2021, the company's accounting records provided the following information for Product B: Transactions a. Inventory, December 31, 2020 For the year 2021: b. Purchase, March 5 Units 7,000 Unit Cost $ 8 19,000 9 10,000 e. Sale, November 20 ($31 each) 8,000 16,000 11 f. Operating expenses (excluding income tax expense), $500,000 c. Sale, June 15 ($29 each) d. Purchase, September 19 Required: 1. Prepare a statement of earnings for 2021 through pretax earnings, showing the detailed computation of cost of sales for two cases: a. Case A-FIFO b. Case B-Weighted average (Round intermediate calculations to 2 decimal place.) Cost of sales: SCORESBY INC. Statement of Earnings For the Year Ended December 31, 2021 Case A FIFO Case B Weighted Average 2. Compare the two cases with regard to the pretax earnings and the ending inventory amounts. Comparison of Amounts Case A Pretax earnings Difference Ending Inventory Difference FIFO Case B Weighted Average 3. Which inventory costing method may be preferred for income tax purposes? Weighted average FIFO