The inventory footnote from Deere & Companys 2015 10-K follows. Inventories Most inventories owned by Deere & Company and its U.S. equipment subsidiaries are valued at cost, on the last-in, first-out (LIFO) basis. Remaining inventories are generally valued at the lower of cost, on the first-in, first-out (FIFO) basis, or market. The value of gross inventories on the LIFO basis represented 66 percent and 65 percent of worldwide gross inventories at FIFO value at October 31, 2015 and 2014, respectively. If all inventories had been valued on a FIFO basis, estimated inventories by major classification at October 31 in millions of dollars would have been as follows:

d. Assuming a 35% income tax rate, by what cumulative dollar amount has Deere's tax expense been affected by use of LIFO inventory costing as of year-end 2015? Has the use of LIFO inventory costing increased or decreased Deere's cumulative tax expense? (Round answer to one decimal place.)

Deere's cumulative income taxes were lowered by $_______million as compared to the taxes that would've been paid under the FIFO system.

e. What effect has the use of LIFO inventory costing had on Deere's pretax income and tax expense for 2015 only (assume a 35% income tax rate)? (Round answers to one decimal place, if applicable.)

2015 pretax income increased by 157 million.

2015 tax expense increased by_______ million.

$ millions 2015 2014 Raw materials and supplies Work-in-process Finished goods and parts $1,614 $1,779 450 654 3,234 3,360 Total FIFO value 5,298 5,793 Less adjustment to LIFO value 1,371 1,528 $3,927 $4,265 Inventories