The following information comes from the 2004 Occidental Petroleum Corporation annual report to shareholders:

Note 5 Inventories

Inventories of approximately $137 million and $171 million were valued under the LIFO method at December 31, 2004 and 2003, respectively. Inventories (in millions) were:

Also, the footnote indicated that the LIFO Reserve increased from $22 million to $54 million during 2004.

Required:
If Occidental Petroleum did not use LIFO for any of its inventory, but used FIFO instead. How would its 2004 pre-tax income beaffected?

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Inventory Balance at December 3 2004 2003 Total S545 $489