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Assume that Toyota Motor Company was consistently profitable and, hence, paying federal income taxes. Assuming a corporate income tax rate of 40%.

How much did Toyota save on federal income taxes during 2007 through the use of LIFO and cumulatively (over all prior years including 2007) how much Toyota saved on federal income taxes through the use of LIFO?

		December 31,				December 31,
		2007				2006
ASSETS
Automotive
Cash and cash equivalents		$	20,678			$	16,022
Marketable securities (Note 3)			2,092				11,31
Loaned securities (Note 3)			10,267				5,256
Total cash, marketable and loaned securities			33,037				32,588
Receivables, less allowances of $196 and $174			4,53				3,163
Inventories (Note 8)			10,121				10,017
Deferred income taxes			532				1,569
Other current assets			5,514				7,616
Current receivable from Financial Services (Note 1)			509
Total current assets			54,243				54,953
NOTE 8. INVENTORIES
Inventories at December 31 were as follows (in millions):
		2007				2006
Raw materials, work-in-process and supplies		$	4,36			$	4,334
Finished products			6,861				6,698
			11,221				11,032
Less: Last-in, first-out method ("LIFO") adjustment			(1,100	)			(1,015	)
Total inventories		$	10,121			$	10,017
		2007				2006
Sales and revenues
Automotive sales		$	154,379			$	143,249
Financial Services revenues			18,076				16,816
Total sales and revenues			172,455				160,065
Costs and expenses
Automotive cost of sales			142,587				148,866
Selling, administrative and other expenses			21,169				19,148
Goodwill impairment			2,4
Interest expense			10,927				8,783
Financial Services provision for credit and insurance losses			668				241
Total costs and expenses			177,751				177,038
Automotive interest income and other non-operating income/(expense), net			1,161				1,478
Automotive equity in net income/(loss) of affiliated companies			389				421
Gain on sale of The Hertz Corporation ("Hertz") (Note 20)
Income/(Loss) before income taxes			(3,746	)			(15,074	)
Provision for/(Benefit from) income taxes (Note 19)			(1,294	)			(2,655	)
Income/(Loss) before minority interests			(2,452	)			(12,419	)
Minority interests in net income/(loss) of subsidiaries			312				210
Income/(Loss) from continuing operations			(2,764	)			(12,629	)
Income/(Loss) from discontinued operations (Note 20)			41				16
Income/(Loss) before cumulative effects of changes in accounting principles			(2,723	)			(12,613	)
Cumulative effects of changes in accounting principles (Note 28)
Net income/(loss)		$	(2,723	)		$	(12,613	)

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