LIFO reserves: White Rose Company Reported year for analysis, 2013

2013 Net income as reported $ 45,200,000

2013 Inventory reserve 20,000,000

2012 Inventory reserve 28,000,000

2013 income taxes 14,000,000

2013 Income before income taxes 59,200,000

a) Compute the approximate income if inventory has been value at approximate current cost.

b) Briefly explain the impact of increase (decrease) inventory reserve to net income.