N7.Account Need help with Questions D and E Analyzing an Inventory Footnote DisclosureIllinois Tool Works reports the following footnote in its 10-K report. The company reports its inventories using the LIFO inventory costing method.December 31 (in millions) 2018 2017$523$465161141731703(97)(89)$1,318 $1,220Raw materialWork-in-processFinished goodsLIFO reserveTotal inventories (d) Assume the company has a 35% income tax rate for years prior to 2017 and a 21% rate thereafter. ITW's LIFO reserve was $86 million at December 31, 2016. As of the 2018 year-end, howmuch has the company saved in taxes by choosing the LIFO over FIFO method for costing inventory?Round your answer to one decimal place. Use a negative sign with answer, if ITW paid more in taxes by choosing LIFO.$48.2 X (million)(e) What effect has the use of LIFO inventory costing had on ITW's pretax income and tax expense for 2018 only (assume a 21% income tax rate)?Round answers to one decimal place, when applicable.2018 pretax income: decreasedby $2682018 tax expense: decreasedby $ 97x million.x million.

LIFO reserve is also known as LIFO allowance, revaluation to LIFO and excess of FIFO over LIFO cost.…

Analyzing an Inventory Footnote Disclosure Illinois Tool Works reports the following footnote in its 10-K report. The company reports its inventories using the LIFO inventory costing method. December 31 (in millions) 2018 2017 $523 $465 161 141 731 703 (97) (89) $1,318 $1,220 Raw material Work-in-process Finished goods LIFO reserve Total inventories

Analyzing an Inventory Footnote Disclosure Illinois Tool Works reports the following footnote in its 10-K report. The company reports its inventories using the LIFO inventory costing method. December 31 (in millions) 2018 2017 $523 $465 161 141 731 703 (97) (89) $1,318 $1,220 Raw material Work-in-process Finished goods LIFO reserve Total inventories

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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