Inventories are stated at the lower of cost or market. Cost is principally determined using the last-in, first-out (LIFO) method. If the FIFO (first-in, first-out) method had been in use, invetories would $2,498 million higher than reported at December 31, 2015 and 2014 respectively.

1. The company reported LIFO cost of goods sold of $33,742 million. Calculate the amount that would be reported for cost of goods sold had the company used FIFO inventory method for all of its inventory.

2. How does the amount in #1 affect income before taxes?

3. Why might the information contained in the disclosure note be useful to a financial analyst?