The following information comes from the 2024 Tesla annual report to shareholders: NOTE 4 INVENTORIES Net carrying values of inventories valued under the LIFO method were approximately $177 million and $197 million on December 31, 2024 and 2023, respectively. Inventories consisted the following: ($ in millions) Raw materials Materials and supplies Finished goods LIFO reserve Total 2024 $71 452 781 1,304 (48) $ 1,256 Pre-tax income would have been 2023 The LIFO reserve indicates that inventories would have been $48 million and $42 million higher at the end of 2024 and 2023, respectively, if Tesla had used FIFO to value its entire inventory. $70 451 400 921 (42) $ 879 Required: If Tesla had used FIFO to value its entire inventory how would its 2024 pre-tax income be affected? million if FIFO had been used to value the entire inventory.

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