Below is information extracted from General Electrics 10k

current year prior year

Raw materials and work in process 5603 5515

finished goods 2863 2546

Unbilled shipments 246 280

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8712 8341

Less LIFO reserves (2,226) (2,076)

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LIFO value of inventories 6486 6265

requirements:

Compute the increase or decrease in the pretax operating profit (loss) that would have been reported for the current year had GE employed FIFO accounting for both years. Indicate whether it was an increase or decrease. (Indicate "increase" or "decrease")

Assuming a marginal tax rate of 35%, compute GE's cumulative tax savings since adopting LIFO

Assuming the same marginal tax rate, compute GE's tax savings this period from using LIFO