The following information can be found in ABC Co.'s financial statements:

	2006	2005
finished goods	$251,690	$195,360
work in process & purchased parts	$245,123	$186,432
raw materials	$136,568	$106,789
inventories	$570,430	$417,395
retained earnings	$3,526,000	$3,159,000

If FIFO method of inventory accounting had been used, inventory would have been approximately $ 62,951 and $71,186 higher than reported in 2006 and 2005 respectively. Assume a tax rate of 35%.

a) What will be the value of inventory for 2006 if ABC used FIFO valuation?

b) What will be the retained earnings for 2005 if ABC used FIFO valuation?