Analyzing an Inventory Footnote Disclosure General Electric Company reports the following footnote in its 10K report. The company reports its inventories using the LIFO inventory costing method. (a) What is the balance in inventories reported on GE's 2012 balance sheet? s. (milfion) (b) What would GE's 2012 balance sheet have reported for inwentories had the compary used FIFO imventory costing? s. (milion) (9) What cumulative effect has GEs choice of tiFO over FifO had on its pretax income as of year end 20127 the cumulative effect is that pretax income has decreased. UFO matches more "current" inventory costs against current selling prices, thus avoiding the recognition of holding gains. he cumulative effect is that pretax income has not changed. LIFO and FFO are simply two different ways to account for inventories. Both methods lead to the same pretax income. The cumulative effect on pretax income is nonexistent. The LIFO and FIFO methods of inventory accounting cause only cash flow effects, and they do not affect pretax income. The cumulative effect is that pretax income has increased. FFF matches more "current" inventory costs against current selling prices, thus avoiding the recognition of holding gains. (d) Assume GE has a 35% income tax rate. As of the 2012 year-end, how much has GE saved in taxes by choosing UFO over FIFO method for costing inventory? (Round your answer to the nearest whole number.) 5 million) (e) What effect has the use of UFO irventory costing had on GEs pretax income and tax expense for 2012 only (assume a 35% income tax rate)? (Round answers to the nearest whole numberi) 2012 pretax income bys milion. 2012 tax expense: by 5 million