The following disclosure was included in the footnotes of Caterpillar's 2008 annual report. The company uses the LIFO cost flow assumption and reported net income of $3,557 for 2008. The company's effective tax rate is 21 percent (dollars in million).

a. Compute 2008 ending inventory for Caterpillar assuming it changed from LIFO to FIFO at the end of 2008.b. Compute the accumulated income tax savings enjoyed by Caterpillar due to the choice of LIFO as opposed to FIFO.c. compute 2008 reported net income for Caterpillar assuming it changed from LIFO to FIFO several years before.d. Explain how the information generated in (a), (b), and (c) could be useful.e. Explain why Caterpillar might oppose a requirement to adopt IFRS by U.S. companies.

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2008 2007 Inventories at current cost Less: Adjustment to LIFO basis Inventories on LIFO basis $9,821 SI1,964 3,183 S 8,781 2,617 S7,204