Question: 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

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 $313.0 million and $220.0 million at December 31, 2017, and 2016, respectively.

For the year 2017, National Paper Company reported net income (after taxes) of $2,444.0 million. At December 31, 2017, the balance of National Paper Companys retained earnings account was $6,280 million.

3. Use of the LIFO method reduced the amount of taxes that National Paper had to pay in 2017 compared with the amount that would have been paid if National Paper had used FIFO. Calculate the amount of this reduction (assume a 30 percent tax rate). (Enter your answer in millions rounded to 1 decimal place.)

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