Assume the following inventory footnote was obtained from the Deere & Company's $201610-$K follows $($$ millions$).$

Inventories Most inventories owned by Deere & Company and its United States equipment subsidiaries are valued at cost$,$ on the $$last$-$in$,$ first$-$out$($LIFO$)$ basis. Remaining inventories are generally valued at the lower of cost$,$ on the $$first$-$in$,$ first$-$out$($FIFO$)$ basis, or market. The value of gross inventories on the LIFO basis represented $61$ percent of worldwide gross inventories at FIFO value on October $31,2016$ and $2015,$ respectively. If all inventories had been valued on a FIFO basis, estimated inventories by major classification at October $31$ in millions of dollars would have been as follows:

$20162015$

Raw materials and supplies $$716$ $$589$

Work$-$in$-$process $425408$

Finished machine and parts $2,1262,004$

Total FIFO value

$3,2673,001$

Less adjustment to LIFO value $1,1321,002$

Inventories $$2,135$ $$1,999$

We notice that not all of Deere's inventories are reported using the same inventory costing method $($companies can use different inventory costing methods for different inventory pools$).$

What effect has the use of LIFO inventory costing had on Deere's tax liability for $2016$ only $($assume a $35\%$ income tax rate$)?$

Select one:

A$.$ $ $85$ million tax savings

B$.$ $$130$ million tax savings

C$.$ $ $45\mathrm{.}5$ million tax savings

D$.$ $$396$ million tax saving