Assume General Electric Company reports the following footnote in its 10-K report. December 31 (In millions) 2016 2015 Raw materials and work in process $ 5,527 $ 5,042 Finished goods 5,152 4,806 Unbilled shipments 333 402 11,012 10,250 Less revaluation to LIFO (697) (661) $10,315 $ 9,589 The company reports its inventories using the LIFO inventory costing method. Assume GE has a 35% income tax rate. As of the 2016 year-end, how much has GE saved in taxes by choosing LIFO over FIFO method for costing inventory

Answers

Answer 1

Answer:

$ 244 million

Explanation:

Calculation for how much has GE saved in taxes by choosing LIFO over FIFO method for costing inventory

Tax rate Amount (In millions)

LIFO $ 10,315.00 35% =$ 3,610.25

FIFO $ 11,012.00 35% =$ 3,854.20

Savings in taxes $ (697.00) $ (243.95)

Hence,

Savings in taxes=$ 3,610.25 million-$ 3,854.20 million

Savings in taxes=($243.95 million)

Savings in taxes=($ 244 million) Approximately

Therefore the amount that GE saved in taxes by choosing LIFO over FIFO method for costing inventory will be $ 244 million


Related Questions

Other Questions
Simon makes a model of a boat, using a scale of 1 : 30If the model has a height of 40 cm, find the height of the real boat.Give your answer in metres. the measures of the angles of a triangle are shown in the figure below solve for x 46 2x+20 72 Can anyone fill this out for me!!! Hi this question is just for people to get points from answering have a wonderful day :) Please help with this His countenance was thoroughly good-humoured; and his manners were as friendly as the style of his letter. Their arrival seemed to afford him real satisfaction,and their comfort to be an object of real solicitude to him. He said much of his earnest desire of their living in the most sociable terms with his family, and pressedthem so cordially to dine at Barton Park every day till they were better settled at home, that, though his entreaties were carried to a point of perseverancebeyond civility, they could not give offence. His kindness was not confined to words; for within an hour after he left them, a large basket full of garden stuff andfruit arrived from the park, which was followed before the end of the day by a present of game. He insisted, moreover, on conveying all their letters to and from thepost for them, and would not be denied the satisfaction of sending them his newspaper every day. He wasbenevolentperceptivebrusqueintimidating Describe where the Byzantine Empire fell within Roman territory. nWhich statement provides the best comparison of General George Patton and General Dwight Eisenhower?O Both represented the US at the Yalta Conference.O Both served terms as Supreme Allied Commander.O Both led American forces in successful campaigns in Europe.O Both were involved in planning and leading the D-Day invasion. pls help due asap Thanks in advance D.because the time is used up due to irrelevant and unnecessary topics& Every time your group conducts a meeting, nothing is accomplishedthat intervene the discussion.As the group leader, how will you keep your members focused on theagenda of the meeting using the restriction strategy?A. Tell them that they will get kicked out from the group if they willB. End the meeting immediately as soonas the group begins totalk about other things irrelevant to the agenda.c. Give instructions before the meeting starts to confine and limitwhat they can say.D. Show disappointment.not cooperate. En el prrafo 1, la palabra incrementado significa -A. aumentadoB. implementadoC. reducidoD. restringido What is most likely to increase both the nutrient levels and the bacterial content of lake water? If gas costs $1.95 per gallon, how many whole gallons of gas could you buy with $36.00? (Make sure to answer with a whole number.) 1. Qu conexin tiene la navidad con el descubrimiento de Amrica? Dramatic irony occurs when the words and actions of the characters in a work of literature have a different meaning for the reader than they dofor the characters. oThis happens when readers have more knowledge about what its taking place than the characters themselves. How doesMark Twain use dramatic irony to create humor in The Adventures of Tom Sawyer? Use evidence from the story to support your response. The following statements are from Enlightenment philosophers:1. That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed.2. Constant experience shows us that every man invested with power is apt to abuse it.3. Where the whole power of one department is exercised by the same hands which possess the whole power of another department, the fundamental principles of a free constitution are subverted.4. You are free at all times, in all places, as soon as you do what you wish to do.Which statement reflects the idea of a social contract? (3 points)Select one:a. 1b. 2c. 3d. 4 Please help can some one explain to no how to get the answer In which quadrant does 694 lie? Use multiplication to find 40% of 165. 40% of 165 is ______ Sharon invested $5000 in a bond for 2 years. The total interest earned on the investment was $600. What was the interest rate on the investment?