1. Assume thatBEER Co. uses the LIFO inventory costing method for both tax and financial reporting purposes.Thebalance sheet reports inventories at $227million. Then, in its footnotes,the companyreports thatending inventories would have been $247million had the company used the FIFO method.

A - The difference between these two numbers ($50million) is referred to asthe --------.

B - What does this difference represent?