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Analyzing an Inventory Footnote Disclosure 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 (d) Assume the company has a 35% income tax rate for years prior to 2017 and a 21% rate thereafter. ITW'S 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. $ 48.2 X (million) (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 $ 268 x million. 2018 tax expense: decreased - by $ 97 X million