Use the first two images to answer the question on Image three using the SAME ACCOUNTS. All that has changed in the third image are the numbers. Don't use pencil or pen. Answers must be typed using professional accounting formatting.

BRIEF EXERCISE 8.10 (a) Rafael Corp. Income StatementAbsorption Costing For the Year Ended December 31, 2020 Sales (40,000 units x $15) Cost of goods sold: Beginning inventory Plus: Cost of goods manufactured (50,000 x $7.60) $380,000 Goods available for sale 380,000 Less: ending inventory (10,000 at $7.60) 76,000 Gross margin Less: S&A [Variable (40,000 x $2) + Fixed ($20,000)] Operating income before tax (b) Variable costing net income $180,000 Plus: Fixed manufacturing overhead costs deferred in ending inventory (10,000 units 8 $1.60) 16,000 Absorption costing operating income $196,000 $600,000 304,000 296,000 1 00,000 $196,000 BE8.10 (L9 1, 2) Information for Rafael Corp. is given in BEgg. Prepare absorption-costing income statement and reconcile the difference in net income under the two approaches. a. Prepare an absorption-costing income statement. b. Reconcile the difference between the net income under variable costing and the net income under absorption costing. That is, show a calculation that explains what causes the difference in net income between the two approaches