QUESTION 1 Correct 1700 points out of 1700 Flag question...

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QUESTION 1 Correct 17.00 points out of 17.00 Flag question Question text Analyzing an Inventory Footnote Disclosure General Electric Company reports the following footnote in its 10-K report. December 31 (in millions) 2008 2007 Raw materials and work in process $ 8,710 $ 7,893 Finished goods 5,032 5,025 Unbilled shipments 561 539 14,303 13,457 Less revaluation to LIFO (706) (623) $ 13,597 $ 12,834 The company reports its inventories using the LIFO inventory costing method. (a) What is the balance in inventories reported on GE's 2008 balance sheet?
(b) What would GE's 2008 balance sheet have reported for inventories had the company used FIFO inventory costing?
(c) What cumulative effect has GE's choice of LIFO over FIFO had on its pretax income as of year end 2008?

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