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Fall 2021 7. A disclosure note from Snap-on Inc.'s 10-K for the 2020 fiscal year is listed below. Use this disclosure note to answer the following questions. Any dollar amounts in your answers should be reported in millions. Note 3. Inventorie Inventories by major clasification of 2020 and 2019 year enda flow 2020 2019 $ 6610 Finished goods Work in progress Raw materials Total FIFO vale Excess of carent cost over LIFO cost Total investories - 616 1235 3305 (330 7165 1263 1440 (34.5) 7804 5 3000 ANNUAL REPORT 5 G None Calidad Frame Inventorius accounted for using the FIFO method approximated 37 and 38% of alternatories w of 2020 and 2019 year end respectively The company accounts for its non U.S. inventory on the FIFO method As of 2020 yeu end, approximately 30% of the company's US inventory was accounted for using the FIFO method and 70% was accounted for in the LIFO method. There were no LIFO inventory liquidation is 2020, 2019 or 2015 a. If the firm had used FIFO for all of its inventories, would before-tax income for the 2020 fiscal year have been higher or lower, and by what amount? Assume a 20% tax rate. (I point) b. Assuming a tax rate of 20%, at the end of 2020, what is the firm's cumulative tax savings by using LIFO instead of solely using FIFO? (1 point)

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