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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 . 1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A. FFO and (b) Case B LIFO 2. Compute the difference between the pretax income and the ending inventory amount for the two cases. 3. Which inventory costing method may be preferred for income tax purposes? Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B. LIFo. Emily Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current yeat, the accounting records provided the following information for product 2 1. Prepare a separate income statement through pretax income that detalis cost of goods sold for (o) Case A: FIFO and (o) Case B: L.IFO. 2. Compute the difference between the pretax income and the ending inventory amount for the two cases. 3. Which inventory costing method may be preferred for income tax purposes? Compute the difference between the pretax income and the ending inventory amount for the two cases. 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 1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A. FIFO and (b) Case B: LIFO 2. Compute the difference between the pretax income and the ending inventory amount for the two cases 3. Which inventory costing method may be preferred for income tax purposes? Which inventory costing method may be preferred for income tax purposes? Which inventory costing method may be preferred for income tax purposes

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