E6-28. Analyzing an Inventory Footnote Disclosure The inventory footnote from Deere & Company's 2018 10-K follows. Inventories A majority of inventory owned by Deere & Company and its U.S. equipment subsid- laries are valued at cost, on the "last-in, first-out" (LIFO) basis. Remaining inventories are gener- ally valued at the lower of cost, on the first-in, first-out" (FIFO) basis, or net realizable value. The value of gross inventories on the LIFO basis at October 28, 2018, and October 29, 2017, repre- sented 54 percent and 61 percent, respectively, of worldwide gross inventories at FIFO value. It all inventories had been valued on a FIFO basis, estimated Inventories by major classifica- tion at October 28, 2018, and October 29, 2017, in millions of dollars would have been as follows: 2018 2017 S millions Raw materials and supplies Work-in-process Finished goods and parts Total FIFO value Less adjustment to LIFO value. Inventories $2,233 776 4,777 S1.688 495 3,182 7,786 1,637 5,365 1,461 S6,149 S3 904 This footnote reveals that not all of Deere's inventories are reported using the same inventory costing method companies can use different inventory costing methods for different inventory pools. a. What amount does Deere report for inventorien og i 2018 Dance sheet? b. What would Deerd have reported an inventories on Instient had the company is FIFO inventory costing for all of its inventorius? What cumulative effect hits the use of LIFE INCOMING Haur din Deere prelas uncone compared with the incominciali e FIFO anventory Costing for all of e What effect has the use of LIFO inventory costing had on Deere's pretax income and tax expense for 2018 only assume a 21% income tax rate)