13- ok Required information P7-8 (Algo) Evaluating the Choice between LIFO and FIFO Based on an Inventory Note LO7-6 [The following information applies to the questions displayed below.] An annual report for National Paper Company included the following note: The last-in, first-out inventory method is used to value most of National Paper's U.S. Inventories... If the first-in, first-out method had been used, it would have increased total inventory balances by approximately $243.0 million and $250.0 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 Company's retained earnings account was $6,880 million. P7-8 Part 1 Required: 1. Determine the amount of net income that National Paper would have reported in 2017 if it had used the FIFO method (assume a 30 percent tax rate). (Enter your answer in millions. Round your intermediate and final answer to 1 decimal place.) Net income million 3 Required information P7-8 (Algo) Evaluating the Choice between LIFO and FIFO Based on an Inventory Note LO7-6 [The following information applies to the questions displayed below.] An annual report for National Paper Company included the following note: The last-in, first-out inventory method is used to value most of National Paper's U.S. Inventories... If the first-in, first-out method had been used, it would have increased total inventory balances by approximately $243.0 million and $250.0 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 Company's retained earnings account was $6,880 million. P7-8 Part 2 2. Determine the amount of retained earnings that National Paper would have reported at the end of 2017 if it always had used the FIFO method (assume a 30 percent tax rate). (Enter your answer in millions. Do not round your intermediate calculations. Round your final answer to the nearest whole number.) Retained earnings million 12 3 of 3 Required information: P7-8 (Algo) Evaluating the Choice between LIFO and FIFO Based on an Inventory Note LO7-6 [The following information applies to the questions displayed below.] An annual report for National Paper Company included the following note: The last-in, first-out inventory method is used to value most of National Paper's U.S. inventories... If the first-in, first-out method had been used, it would have increased total inventory balances by approximately $243.0 million and $250.0 million at December 31, 2017, and 2016, respectively. Book Print 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 Company's retained earnings account was $6,880 million. P7-8 Part 3 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.) Reduction in taxes million