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Restating Inventory Values Using the LIFO Inventory Reserve. Chemical Boost, Inc. is a manufacturer of chemical and derivative products. Presented below is selected information from

image text in transcribedimage text in transcribed Restating Inventory Values Using the LIFO Inventory Reserve. Chemical Boost, Inc. is a manufacturer of chemical and derivative products. Presented below is selected information from Chemical Boost's recent annual report. \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{\begin{tabular}{l} Chemical Boost, Inc. \\ Condensed Balance Sheet \end{tabular}} \\ \hline Assets & & & Liabilities \& Shareholders' Equity & & \\ \hline Inventory & $16,250 & $15,500 & Liabilities & $63,175 & $61,300 \\ \hline Other current assets & 33,900 & 34,750 & Capital stock & 18,650 & 17,950 \\ \hline Noncurrent assets & 50,750 & 47,250 & Retained earnings & 19,075 & 18,250 \\ \hline Total & $100,900 & $97,500 & Total & $100,900 & $97,500 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{\begin{tabular}{l} Chemical Boost, Inc. \\ Condensed Statement of Earnings \end{tabular}} \\ \hline (\$ millions) & Year 2 & Year 1 \\ \hline Revenues & $101,425 & $104,750 \\ \hline Cost of goods sold & 69,125 & 70,600 \\ \hline Gross proft & 32,300 & 34,150 \\ \hline Other expenses & 29,400 & 31,063 \\ \hline Income taxes & 750 & 1,550 \\ \hline Net earnings & $2,150 & $1,538 \\ \hline \end{tabular} Year 2 and Year 1. Assume an effective tax rate of 26%. 1. If Chemical Boost, Inc. had used FIFO instead of LIFO to value its inventory, what value would have been reported for Year 2 for the following accounts? Enter answers in millions. Round to the nearest million, if needed. a. Ending inventory \$ million b. Cost of goods sold $ million c. Net income before $ million d. Retained earnings $ million 2. How much additional income tax would the company have paid if it had used FIFO instead of LIFO to value its inventory? Round to the nearest millions. $ million

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