The answer $30 million is correct, but I need help learning how to solve for that. thank you

2 \begin{tabular}{|l|c|c|} \hline Dalance sneet & LULO & LULI \\ \hline Cash and cash equivalents & 172 & 157 \\ \hline Accounts receivable & 626 & 458 \\ \hline Inventories & 620 & 539 \\ \hline Other current assets & 125 & 65 \\ \hline Total current assets & 1,543 & 1,219 \\ \hline Property and equipment, net & 3,035 & 2,972 \\ \hline Total assets & 4,578 & 4,191 \\ \hline Total current liabilities & 1,495 & 1,395 \\ \hline Long-term debt & 644 & 604 \\ \hline Total liabilities & 2,139 & 1,999 \\ \hline Common stock and paid in capital & 1,652 & 1,652 \\ \hline Retained earnings & 787 & 540 \\ \hline Total shareholders' equity & 2,439 & 2,192 \\ \hline Total liabilities and shareholders' equity & 4,578 & 4,191 \\ \hline & & \\ \hline Income Statement & 2018 & 2017 \\ \hline Sales & 4,346 & 4,161 \\ \hline Cost of goods sold & 2,211 & 2,147 \\ \hline Depreciation and amortisation expense & 139 & 119 \\ \hline Selling, general, and administrative expense & 1,656 & 1,637 \\ \hline Interest expense & 31 & 18 \\ \hline Income tax expense & 62 & 48 \\ \hline Net income & 247 & 192 \\ \hline \end{tabular} Notes: 1), The LIFO reserves as of 31 December 2018 and 2017 are $155 million and $117 million respectively, and 2), The effective income tax rate applicable to Karp for 2018 and earlier periods is 20 percent. If Karp had used FIFO instead of LIFO, its reported net income for the year ended 31 December 2018 would have been higher by an amount closest to: $30 million. $38 million. $155 million