The following data pertains to the operations of Alpha Corporation for the year ended December 31 , 20X1, its first year of operations. Alpha Corporation makes computer equipment. Round ending inventory computations to the nearest dollar. Required: 1. Prepare an income statement for the year using the absorption costing approach. 2. Prepare an income statement for the year using the direct costing approach. 3. What is the difference between the net income or loss computed under the two methods? Analyze: Assume that Alpha Corporation's manufacturing managers believe that only those costs that contribute directly to product production should be assigned to cost of goods manufactured. Which costing method would these managers prefer? Complete this question by entering your answers in the tabs below. Prepare an income statement for the year using the direct costing approach