EKG Corp. uses the LIFO method for accounting for inventory. Its LIFO inventory balance on December 31, 2014 is $65,000. COGS under LIFO during 2014 was $50,000. EKG Corp. further discloses in the notes of its 2014 annual report that the inventory balance on December 31, 2014 would have been $90,000 if the company used the FIFO method.

1. (6 points) As of the end of December 31, 2014, how much had EKG reduced its income taxes over the life of its operations by using LIFO instead of FIFO? Assume a constant tax rate of 30%.