Caldwell Corporation operates an ice cream processing plant and uses the FIFO inventory cost flow assumption. A partial income statement for the year ended December 31, 2014, follows:

Caldwell€™s physical inventory levels were virtually constant throughout 2014. The FIFO dollar amount of inventory at January 1, 2014, was $60,000,000. During 2014, the Consumer Price Index (an index of overall average purchasing power for typical urban-dwelling consumers) increased by 4%.
Caldwell Corporation€™s largest competitor, Cohen Confections, uses LIFO for inventory accounting. Excerpts from its December 31, 2014, inventory note were:

The difference between the LIFO inventory amounts and the replacement cost of the inventory at
December 31, 2014 and 2013, respectively, was $18,000,000 and $12,000,000. A LIFO liquidation occurred in 2014, which increased the reported gross margin by $1,000,000.

Required:
Using the preceding information, what is the best estimate of the amount of realized holding gains (or inventory profits) included in Caldwell Corporation€™s income beforetaxes?

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Caldwell Corporation Statement of Income For the Year Ended December 31,2014 Sales revenues Cost of goods sold Gross margin SG&A expenses $680,000,000 360,000,000 320,000,000 200,000.000 $120,000,000 Income before taxes Cohen Confections Inventory Note Inventories are computed using the LIFO cost flow assumption. Comparative amounts were: December 31, 2014 2013 Raw materials Finished goods $8,100,000 76,000,000 $84.100,000 8,000,000 80,000,000 $88.000,000