Givoly Inc. 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 Unit CostInventory, December 31, prior year 7,900 $ 11 For the current year: Purchase, March 5 19,900 9 Purchase, September 19 10,900 5 Sale ($27 each) 8,900 Sale ($29 each) 16,900 Operating expenses (excluding income tax expense) $409,000 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 amounts for the two cases. Comparison AmountsCase A Case BFIFO LIFO DifferencePretax IncomeEnding Inventory3. Which inventory costing method may be preferred for income tax purposes?