The following information comes from the 2024 Tesla annual report to shareholders: NOTE 4 INVENTORIES Net...

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The following information comes from the 2024 Tesla annual report to shareholders: NOTE 4 INVENTORIES Net carrying values of inventories valued under the LIFO method were approximately $178 million and $198 million on December 31, 2024 and 2023, respectively. Inventories consisted of the following: ($ in millions) Raw materials Materials and supplies Finished goods LIFO reserve Total 2024 $ 72 453 782 1,307 (49) $ 1,258 2023 $ 71 452 401 924 (43) $ 881 The LIFO reserve indicates that inventories would have been $49 million and $43 million higher at the end of 2024 and 2023, respectively, if Tesla had used FIFO to value its entire inventory. Required: If Tesla had used FIFO to value its entire inventory how would its 2024 pre-tax income be affected? The following information comes from the 2024 Tesla annual report to shareholders: NOTE 4 INVENTORIES Net carrying values of inventories valued under the LIFO method were approximately $178 million and $198 million on December 31, 2024 and 2023, respectively. Inventories consisted of the following: ($ in millions) Raw materials Materials and supplies Finished goods LIFO reserve Total 2024 $ 72 453 782 1,307 (49) $ 1,258 2023 $ 71 452 401 924 (43) $ 881 The LIFO reserve indicates that inventories would have been $49 million and $43 million higher at the end of 2024 and 2023, respectively, if Tesla had used FIFO to value its entire inventory. Required: If Tesla had used FIFO to value its entire inventory how would its 2024 pre-tax income be affected?

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Determine the impact on Teslas pretax income if FIFO FirstIn FirstOut method w... View the full answer