Inventories Most inventories owned by Deere & Company and its U.S. 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 66 percent and 65 percent of worldwide gross inventories at FIFO value at October 31, 2015 and 2014, 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:

$ millions	2015	2014
Raw materials and supplies	$1,559	$1,724
Work-in-process	450	654
Finished goods and parts	3,234	3,360
Total FIFO value	5,243	5,738
Less adjustment to LIFO value	1,426	1,528
Inventories	$3,817	$4,210

This footnote reveals 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).

e. What effect has the use of LIFO inventory costing had on Deere's pretax income and tax expense for 2015 only (assume a 35% income tax rate)? (Round answers to one decimal place, if applicable.)

2015 pretax income increased by how much?

2015 tax expense increased by how much ?