CP$7-5($Algo$)$ Using Financial Reports: Evaluating the Choice between LIFO and FIFO Based on an Inventory Note LO$7-6$

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An annual report for International Parchment Company included the following note:

The last$-$in$,$ first$-$out inventory method is used to value most of International Parchment$$s U$.$S$.$ inventories $...$ If the first$-$in$,$ first$-$out method had been used, it would have increased total inventory balances by approximately $$310\mathrm{.}0$ million and $$230\mathrm{.}0$ million at December $31,2017,$ and $2016,$ respectively.

For the year $2017,$ International Parchment Company reported net income $($after taxes$)$ of $$2,450\mathrm{.}0$ million. At December $31,2017,$ the balance of International Parchment Company$$s retained earnings account was $$6,180$ million.

CP$7-5$ Part $1$

Required:

$1.$ Determine the amount of net income that International Parchment would have reported in $2017$ if it had used the FIFO method $($assume a $30$ percent tax rate$).$