Analyzing an Inventory Footnote Disclosure General Electric Company reports the following footnote in its 10-K report.

December 31 (in millions)	2012	2011
Raw materials and work in process	$ 9,295	$ 8,735
Finished goods	6,020	4,971
Unbilled shipments	378	485
	15,693	14,191
Less revaluation to LIFO	(398)	(450)
	$ 15,295	$ 13,741

The company reports its inventories using the LIFO inventory costing method.

(d) Assume GE has a 35% income tax rate. As of the 2012 year-end, how much has GE saved in taxes by choosing LIFO over FIFO method for costing inventory? (Round your answer to the nearest whole number.) $________(million)

(e) What effect has the use of LIFO inventory costing had on GE's pretax income and tax expense for 2012 only (assume a 35% income tax rate)? (Round answers to the nearest whole number.) 2012 pretax income:

increased by $__________ million.

2012 tax expense:

increased by $________ million.