Inventory, December $31,$ prior year

For the current year:

Purchase, April $11$

Purchase, June $1$

Sales $($$$50$ each$)$

Operating expenses $($excluding income tax expense$)$

Required:

$\backslash$table$[[,3,000,$$$9],[,9,000,10],[,7,000,15],[,10,000,],[$$ $190,000,,]]$

Prepare a separate income statement through pretax income that details cost of goods sold for $($a$)$ Case A: FIFO and $($b$)$ Case B: LIFO.

Compute the difference between the pretax income and the ending inventory amount for the two cases.

Which inventory costing method may be preferred for income tax purposes?

Required $1$

Required $2$

Required $3$

Prepare a separate income statement through pretax income that details cost of goods sold for $($a$)$ Case A: FIFO and $(b)$ Case B: LIFO.