Required Information E7-7 (Algo) Analyzing and Interpreting the Financial Statement Effects of LIFO and FIFO LO7-2,7-3 (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 2,990 Unit Cost $12 Inventory, December 31, prior year Yor the current years Purchase, April 11 Purchase, June 1 Ba len ( 50 each) Operating expenses (excluding income tax expense) 8,920 7,830 10,810 13 18 $185,000 E7-7 Part 2 2. Compute the difference between the pretax income and the ending inventory amount for the two cases. Comparison of Amounts Case A Case B LIFO Difference FIFO Pretax income Ending inventory