P7-8 (Algo) Evaluating the Choice between LIFO and FIFO Based on an Inventory Note LO7-6

[The following information applies to the questions displayed below.]

An annual report for National Paper Company included the following note:

The last-in, first-out inventory method is used to value most of National Papers U.S. inventories . . . If the first-in, first-out method had been used, it would have increased total inventory balances by approximately $273.0 million and $230.0 million at December 31, 2017, and 2016, respectively.

For the year 2017, National Paper Company reported net income (after taxes) of $2,144.0 million. At December 31, 2017, the balance of National Paper Companys retained earnings account was $6,880 million.

Determine the amount of retained earnings that National Paper would have reported at the end of 2017 if it always had used the FIFO method (assume a 35 percent tax rate). (Enter your answer in millions. Do not round your intermediate calculations. Round your final answer to the nearest whole number.)