Problems $10-13$ Interpreting a LIFO note $($LO$10-5,$ LO$10-6,$ LO$10-7)$

Bourne Company $($a fictional company$)$ has the following inventory note in its $203$ annual report.

LIFO revaluations decreased $$140$ million in $203,$ compared with decreases of $$169$ million in $202$ and $$82$ million in $201.$ Included in these changes were decreases of $$30$ million, $$12$ million, and $$3$ million in $203,202,$ and $201,$ respectively, that resulted from lower.LIFO inventory levels. There were net cost decreases in each of the last three years.

Bourne's earnings before income taxes were $$20\mathrm{.}0$ billion in $203.$ Assume a $21\%$ marginal tax rate.

Required:

What are the total cumulative tax savings as of December $31,203,$ that Bourne has realized as a result of using the LIFO inventory method?

What would Bourne's pre$-$tax earnings have been in $203$ if it had been using FIFO?

What December $31,203,$ balance sheet amounts would be different$-$and by how much$-$if Bourne had used FIFO to account for its inventories?

What were the LIFO liquidation profits reported in $203$ both pre$-$tax and after$-$tax?

Complete this question by entering your answers in the tabs below.

Required $2$

What are the total cumulative tax savings as of December $31,20$X$3,$ that Bourne has realized as a result of using the LFO inventory method? $($Enter your answer in millions. Round your answer to $2$ decimal places.$)$

Total cumulative tax savings