As of January 30, 2021, The Kroger Company (Kroger") operated, sher directly or through its subsidiaries, 2,742 permarkets January 30, a variety of cat banner names Kroger reported the following for the fiscal year ending 2021 (in million dollars)

Inventory (at LFO) Accumulated Earnings

January 30, 2021 $7,061

$23,018

February 1, 2020

$7,084

if Kroger had used the FIFO inventory valuation method, the inventory balance would have been $8,464 million on January 30, 2021, and February 1, 2020, respectively balances would have been $8,436 and

Required:

1. If Kroger had used FIFO instead of UFO, by how much would Accumulated Earnings (Kroger's term for

"Retained Earnings") have been higher or lower on February 1, 2020, and January 30, 2021? (Note

whether Accumulated Earnings would be higher or lower and the amount for each date)

2. Although Kroger was founded before income taxes were enacted, assume that the relevant income

tax rate was 20% prior to February 1, 2020. Determine the balance in Kroger's Accumulated Earnings

account on February 1, 2020, had Kroger used FIFO instead of LIFO.

3. Assume that the relevant income tax rate increased to 30% after February 1, 2020. Determine the balance in Kroger's Accumulated Earnings account on January 30, 2021, had Kroger used FIFO instead

of LIFO

4. Kroger reported net income of $2,595 in the fiscal year ending January 30, 2021, under the LIFO method. Determine the amount of dividends that Kroger declared in the fiscal year ending January

30, 2021.

5. If Kroger had used the FIFO method of inventory accounting, determine the amount of net income that Kroger would have reported in the fiscal year ending January 30, 2021.