Caldwell Corporation operates an ice cream processing plant and uses the FIFO inventory cost flow assumption. A partial income statement for the year ended December 31, 2017, follows:

Caldwell Corporation

Statement of Income

For the Year Ended December 31, 2017

Sales revenues..............................................................$680,000,000

Cost of goods sold.........................................................360,000,000

Gross margin................................................................320,000,000

SG&A expenses............................................................200,000,000

Income before taxes......................................................$120,000,000

Caldwell's physical inventory levels were virtually constant throughout 2017. The FIFO dollar amount of inventory at January 1, 2017, was $60,000,000. During 2017, the Consumer Price Index (an index of overall average purchasing power for typical urban-dwelling consumers) increased by 4%.

Caldwell Corporation's largest competitor, Cohen Confections, uses LIFO for inventory accounting. Excerpts from its December 31, 2017, inventory note were:

Cohen Confections

Inventory Note

Inventories are computed using the LIFO cost flow assumption. Comparative amounts were:

The difference between the LIFO inventory amounts and the replacement cost of the inventory at December 31, 2017 and 2016, respectively, was $18,000,000 and $12,000,000. A LIFO liquidation occurred in 2017, which increased the reported gross margin by $1,000,000.
Required:
Using the preceding information, what is the best estimate of the amount of realized holding gains (or inventory profits) included in Caldwell Corporation's income before taxes?

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December 31, 2017 2016 Raw materials Finished goods $ 8,100,000 8,000,000 80,000,00 $84,100,000 88,000,000 76,000,000