Illinois Tool Works reports the following footnote in its 10-K report. The company reports its inventories using the LIFO inventory costing method.

December 31 (in millions)	2018	2017
Raw material	$523	$465
Work-in-process	161	141
Finished goods	731	703
LIFO reserve	(97)	(89)
Total inventories	$1,318	$1,220

(a) What is the balance in inventories reported on ITW's 2018 balance sheet?

(b) What would ITW's 2018 balance sheet have reported for inventories had the company used FIFO inventory costing?

(d) Assume the company has a 35% income tax rate for years prior to 2017 and a 21% rate thereafter. ITWs LIFO reserve was $86 million at December 31, 2016. As of the 2018 year-end, how much has the company saved in taxes by choosing the LIFO over FIFO method for costing inventory?Round your answer to one decimal place. Use a negative sign with answer, if ITW paid more in taxes by choosing LIFO. (e) What effect has the use of LIFO inventory costing had on ITW's pretax income and tax expense for 2018 only (assume a 21% income tax rate)?

Round answers to one decimal place, when applicable. 2018 pretax income: decreased by :

2018 tax expense: by