Chief Software Company's 2019 balance sheet reveals that inventories reported on a LIFO basis are $16,860 million. In a footnote, management stated that the LIFO reserve was $2,400 million.
a. How much would Chief's Software's ending inventory be using FIFO?
b. What is the total cumulative tax effect of using LIFO given a 35% income tax rate?

Question

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The Answer of Chief Software Company's 2019 balance sheet reveals that inventories reported on a LIFO basis are $16,860 million. In a footnote, management stated that the LIFO reserve was $2,400 million.
a. How much would Chief's Software's ending inventory be using FIFO?
b. What is the total cumulative tax effect of using LIFO given a 35% income tax rate?

Chief Software Company's 2019 Balance Sheet Reveals That Inventories Reported