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(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

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(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 2,880 Unit Cost $11 Inventory, December 31, prior year For the current year: Purchase, April 11 Purchase, June 1 Sales ($59 each) Operating expenses (excluding income tax expense) 8,850 7,840 10,860 12 17 $189,000 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

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